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The Banking Sector: Economies Of Scale Afoot

Author

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  • Michael Khromov

    (Gaidar Institute for Economic Policy)

Abstract

During ten months of 2015, the banking sector has demonstrated very low results. Operating income and profi tability have declined and many credit institutions have obtained negative fi nancial results. State owned banks and banks under resolution regime have been bearing losses. Obvious economies of scale is being observed: large banks are more profi table than the small ones even despite the more active provision of reserves against potential losses.

Suggested Citation

  • Michael Khromov, 2015. "The Banking Sector: Economies Of Scale Afoot," Russian Economic Development, Gaidar Institute for Economic Policy, issue 12, pages 41-44, December.
  • Handle: RePEc:gai:recdev:634
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    More about this item

    Keywords

    Banking sector; Russian Economy;

    JEL classification:

    • E21 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Consumption; Saving; Wealth
    • E41 - Macroeconomics and Monetary Economics - - Money and Interest Rates - - - Demand for Money
    • E51 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Money Supply; Credit; Money Multipliers
    • E58 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Central Banks and Their Policies
    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages

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