THE BANKS IN THE RUSSIAN REGIONS: THE STRESS IS FINISHING

Abstract

The massive reduction of the number of banks, registered in the country, has led to enormous structural changes in the level of provision of banking services in the regions of Russia. Major federal banks should replace weak regional credit institutions. However, the results of this common for the Russian Federation process differ, depending on the region. The authors have identified some Russian regions, where banks’ restructuring does not affect entrepreneurial activity. Moreover, survived local banks render successful competition to the federal players. In most regions of the Russian Federation, the restructuring of the banking system exposed the problem of reducing of the lending to small and medium-sized businesses. Weakening of regulatory requirements for banks with a basic license, starting in 2019, will help to solve this problem.