Banks with foreign participation in Russia: response to external threats

Tyumen State University Herald. Social, Economic, and Law Research


Release:

Vesntik TSU. Economy (#11). 2014

Title: 
Banks with foreign participation in Russia: response to external threats


About the authors:

Natalya A. Baburina, Cand. Sci. (Econ.), Associate Professor, Department of Finance, Money Circulation and Credit, Financial and Economic Institute, Tyumen State University; natalbaburina@mail.ru

Alexey G. Kutsev, Cand. Sci. (Econ.), Associate Professor, Deputy Director, Financial and Economic Institute, Tyumen State University; akutsev@distance.ru

Abstract:

The present article studies entry stages of foreign credit institutions to the domestic banking market. The authors have determined time points at which the rate of non-resident expansion to authorized capital of commercial banks increases/ decreases depending on the political and economic situation in Russia. Quantitative and qualitative indicators of foreign bank participation in joint authorized capital of the Russian banking system have been defined. The focus of attention is model banking business strategy in Russia by non-residents in the context of past economic and financial crises, as well as forms of interaction of foreign banks with their customer base. The article contains an assessment of the international financial market response to the economic sanctions imposed by the United States, Canada, Japan and Western Europe. Those sanctions gave rise to a policy of gradual access restriction of long-term and medium-term capital to markets for Russian banking structures. In conclusion the authors consider it possible to launch long-term processes of property redistribution in the Russian banking system in favor of residents and non-residents from Asian countries.

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