2009
8/2009
Has banks’ financial intermediation improved in Russia?
Author(s): Zuzana Fungáčová and Laura Solanko
2009. 16 pages / sivua.
Publisher: Bank of Finland
ISSN 1456-811X (Web publication)
Search words: Russia, banks, financial intermediation, financial system, Zuzana Fungáčová, Laura Solanko
The aim of this paper is to analyze the increasing importance of banks in the Russian economy over the period following the financial crisis of 1998. We use several measures to assess the role of banks in domestic financial intermediation in Russia. The traditional macro-level view is complemented by the analysis of sectoral financial flows as well as by insights from micro-level studies. All of these confirm that banks are becoming increasingly important in financial intermediation. We find that the scope and efficiency of intermediation by Russian banks has improved over time, but the level of banks’ financial intermediation still lags behind other countries with similar levels of income. Possible explanations for this include the dual nature of Russian financial system.