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«Национальные Чемпионы» В Структуре Российского Рынка Банковских Услуг
[National champions and the competitive structure of the Russian banking market]

Author

Listed:
  • Vernikov, Andrei

Abstract

We assess the effects from the industrial policy of growing state-controlled national champions on the Russian banking system, its concentration and competitiveness. Some light is shed on comparative financial performance of state-controlled banks versus other market participants. We also show that direct stare ownership is being replaced by indirect ownership and control. The period of observations spreads from 2000 through 1Q 2012. We modify the method of calculating the indicators of market concentration to reflect public ownership of the core market players. As a result of this modification, most market segments cross the threshold of high concentration (HHI ≥ 0.25), whereas household deposits market becomes close to monopoly. Supremacy of public banks enhances their market power and enables collecting rent that boosts profitability. In terms of institutional dynamics, we find a growing similarity between the Russian case and the evolution of the Chinese banking industry.

Suggested Citation

  • Vernikov, Andrei, 2012. "«Национальные Чемпионы» В Структуре Российского Рынка Банковских Услуг [National champions and the competitive structure of the Russian banking market]," MPRA Paper 40236, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:40236
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    References listed on IDEAS

    as
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    2. Karas, Alexei & Schoors, Koen & Weill, Laurent, 2008. "Are private banks more efficient than public banks? Evidence from Russia," BOFIT Discussion Papers 3/2008, Bank of Finland Institute for Emerging Economies (BOFIT).
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    8. Anzoategui, Diego & Pería, María Soledad Martínez & Melecky, Martin, 2012. "Bank competition in Russia: An examination at different levels of aggregation," Emerging Markets Review, Elsevier, vol. 13(1), pages 42-57.
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    12. Koen Schoors, 2003. "The Fate of Russia's Former State Banks: Chronicle of a Restructuring Postponed and a Crisis Foretold," Europe-Asia Studies, Taylor & Francis Journals, vol. 55(1), pages 75-100.
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    14. Vernikov, Andrei, 2017. "The impact of state-controlled banks on the Russian banking sector," MPRA Paper 77155, University Library of Munich, Germany.
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    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Russia; state-owned banks; public sector; industrial policy; national champions; market structure; concentration; Herfindahl-Hirschman Index;
    All these keywords.

    JEL classification:

    • L13 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Oligopoly and Other Imperfect Markets
    • G28 - Financial Economics - - Financial Institutions and Services - - - Government Policy and Regulation
    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages

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