Preview

Voprosy Ekonomiki

Advanced search
Open Access Open Access  Restricted Access Subscription Access

National Champions and the Competitive Structure of the Russian Banking Market

https://doi.org/10.32609/0042-8736-2013-3-94-108

Abstract

We assess the effect that the industrial policy of growing state-controlled national champions in Russia had on concentration and competitiveness of the banking system in 2000—2012. A modified method of calculating the indicators of market concentration suggests that the main segments of the market have crossed the threshold of high concentration, whereas the household deposits market has approached a monopoly situation. Supremacy of public banks enhances their market power and enables collecting rent that boosts profitability. We suggest that Russia’s industrial policy in banking might be similar to that of China.

About the Author

A. Vernikov
National Research University Higher School of Economics (Moscow, Russia); Institute of Economics, RAS (Moscow, Russia)
Russian Federation


References

1. Babayev S. (2010). Efficiency of State-owned Banks: The Case of Sberbank of Russia, PLC. Moscow.

2. Vernikov A. V. (2009). The Share of State-controlled Banks in the Russian Banking Industry // Dengi i Kredit. No 11. P. 4—14.

3. Konyagina M. N. (2011). Implementation of the Objective Functions of State-controlled Banks through Corporate Governance Mechanisms. St.Petersburg.

4. Tulin D. V. (2010). Stateowned Banks: Issues of Corporate Governance // Analiticheskiy Bankovskiy Zhurnal. No 4. P. 34—40.

5. Sprenger C. (2010). State Ownership in the Russian Economy. Part 1: Its Magnitude and Allocation Sector-wise // Zhurnal Novoy Ekonomicheskoy Associacii. No 6. P. 120—142.]

6. Anzoátegui D., Martínez Pería M.S., Melecky M. (2012). Bank Competition in Russia: An Examination at Different Levels of Aggregation // Emerging Markets Review. Vol. 13, No 1. P. 42—57.

7. Barth J., Caprio G., Levine R. (2004). Bank Supervision and Regulation: What Works Best? // Journal of Financial Intermediation. Vol. 13. P. 205—248.

8. Bertay A. C., DemirgüçKunt A., Huizinga H. (2012). Bank Ownership and Credit over the Business Cycle: Is Lending by State Banks Less Procyclical? // World Bank Policy Research Working Paper. No 6110.

9. BIS (2011). Global Systemically Important Banks: Assessment Methodology and the Additional Loss Absorbency Requirement / Basel Committee on Banking Supervision. Basel: Bank for International Settlements.

10. Bonin J., Hasan I., Wachtel P. (2005). Bank Performance, Efficiency and Ownership in Transition Countries // Journal of Banking and Finance. Vol. 29, No 1. P. 31—53.

11. CBRC (2012). China Banking Regulatory Commission 2011 Annual Report. Beijing. Falck O., Gollier Ch., Woessmann L. (eds.) (2011). Industrial Policy for National Champions / CESinfo Seminar Series. Boston: Massachusetts Institute of Technology.

12. Fan J. P. H., Wong T. J., Zhang T. (2005). The Emergence of Corporate Pyramids in China // SSRN Working Paper Series. ssrn.com/abstract=686582.

13. Fungáčová Z., Solanko L., Weill L. (2010). Market Power in the Russian Banking Industry // International Economics. Vol. 124, No 4. P. 127—145.

14. Fungáčová Z., Poghosyan T. (2011). Determinants of Bank Interest Margins in Russia: Does Bank Ownership Matter? // Economic Systems. Vol. 35. No 4. P. 481—495.

15. Fungáčová Z., Weill L. (2012). Bank Liquidity Creation in Russia // Eurasian Geography and Economics. Vol. 53. No 2. P. 286—300.

16. IMF (2011). Russian Federation: Financial System Stability Assessment. IMF Country Report No 11/291 / International Monetary Fund. Washington, DC, Sept.

17. Karas A., Schoors K., Weill L. (2010). Are Private Banks More Efficient than Public Banks?: Evidence from Russia // Economics of Transition. Vol. 18, No 1. P. 209—244.

18. La Porta R., Lо pezdeSilanes F., Shleifer A. (2002). Government Ownership of Banks // Journal of Finance. Vol. 57, No 1. P. 265—301.

19. OECD (2005). Guidelines on Corporate Governance of State-Owned Enterprises. Paris: Organisation for Economic Cooperation and Development.

20. Okhmatovskiy I. (2009). Performance Implications of Ties to the Government and SOEs: A Political Embeddedness Perspective // Journal of Management Studies. Vol. 47, No 6. P. 1020—1047.

21. Raiffeisenbank (2012). Performing in Challenging Times. CEE Banking Sector Report 2012. Vienna: Raiffeisen Bank International AG.

22. Schoors K. (2003). The Fate of Russia’s Former State Banks: Chronicle of a Restructuring Postponed and a Crisis Foretold // Europe—Asia Studies. Vol. 55, No 1. P. 75—100.

23. Vernikov A. (2009). Russian Banking: The State Makes a Comeback? // BOFIT Discussion Papers. No DP 24/2009. Helsinki: Bank of Finland.

24. Vernikov A. (2012). The Impact of State-Сontrolled Banks on the Russian Banking Sector // Eurasian Geography and Economics. Vol. 53, No 2. P. 250—266.

25. Vives X. (2001). Competition in the Changing World of Banking // Oxford Review of Economic Policy. Vol. 17, No 4. P. 535—547.


Review

For citations:


Vernikov A. National Champions and the Competitive Structure of the Russian Banking Market. Voprosy Ekonomiki. 2013;(3):94-108. (In Russ.) https://doi.org/10.32609/0042-8736-2013-3-94-108

Views: 727


ISSN 0042-8736 (Print)