Current Tendencies of the Russian Banking Sector Development

Abstract

The reasons of the financial crisis of 1998 in Russia are considered in the article. It is stressed that the monetary authorities missed the chance to establish the banking sector framework in the country closer to tested Western standards. The current state of the Russian banking system is analyzed, its unresolved problems are formulated: lack of an enabling environment, difficulties with choosing the banking model, absence of a level playing field, low trust, deficiencies of regulatory framework and corporate governance. Privatization of state banks and introduction of a two-tier banking system are proposed.