Russian Banking System

Russian Banking System the Current State and the Prospects for the Future Developments During the good decade the Russian banking formation passed through the several stages of its development, including its establishments, a period of a rapid growth, an acute crisis and the recovery. The growth of the nitty-gritty banking carcass was predetermined by the demand for the banking services in the transition period to the market economy. The Russian banking system genuine in 1992-1998 under the unfavorable macroeconomic conditions, including social and semi governmental instability, continuous decline in production and investment and blueish inflation. The banking crisis was an inseparable component of the 1998 system monetary crisis. That crisis was rooted in general in the growing of the home(prenominal) problems rather then in the international crisis. The major part of the Russian commercial banks were unproductive (compared with their foreign counterparts) and could exist only under the conditions of the mettlesome profitability of the banking operations. Banking profits were insured by the redistribution of the enterprises between different sectors, delays in the transfer of the clients funds and the extremely towering yields of the federal bonds.

The results were the default on the federal bonds, external debt and the sagaciously ruble rate depreciation. As the consequences the largest Russian commercial banks were in crisis (on the eve of bankruptcy) along with the sharp cut of the volume of the familys deposits. Meanwhile the real sector had the impulse f or the future developments from the ruble ! rate depreciation. Directly after the system monetary crisis in August 1998 the further development of the Russian banking system could be proceeded according to the three basic scenario (or some combinations of them): the political support of the banking reform, the attraction of the foreign capital on the home(prenominal) market or the recovery through the using frame banking capital...If you want to get a full essay, order it on our website: OrderCustomPaper.com

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