The Russian Banking Industry after the 2008-2009 Financial Crisis - What Next?

Author(s): Laura Solanko, Zuzana Fungácová
Editor(s): Stephen Aris, Matthias Neumann, Robert Orttung, Jeronim Perovic, Heiko Pleines, Hans-Henning Schröder
Series: Russian Analytical Digest (RAD)
Issue: 74
Pages: 2-4
Publisher(s): Center for Security Studies (CSS), ETH Zurich; Research Centre for East European Studies, University of Bremen; Institute of History, University of Basel
Publication Year: 2010

Although the Russian banking sector is relatively small by international standards, it is growing rapidly. The sector is highly fragmented, with the large number of small banks complicating oversight and limiting interbank trust. At the same time, state banks dominate the industry. The Russian financial system suffered greatly during the 2008-9 international crisis because it is highly dependent on the price of oil and the international financial markets. The current financial crisis most likely will not alter the makeup of the sector, but continued tightness in international money markets could ultimately hinder Russian growth.

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