Regional banking system competitiveness issues and the investments

The factors that contribute to the decrease in the sustainable Russian economy growth are the financial resource concentration in the raw material-related sectors; lack of investments that go into the processing industry development; inefficient mechanisms offered to be used to improve the competitiveness level of the product made by the majority of the entities operating in the non-raw material sectors. In view of the above, one of the main tasks the state bodies have to fulfill now is to ensure the economic growth based on the structural transformation of the economy and the competitiveness level improvement. The international experience shows that virtually the only way to reach the goal is to provide substantial investments into the real economic sector and to create an efficiently operating mechanism of transferring the money. A special role here is played by the loan and credit organizations that are to accumulate the business entities' spare cash and use it to develop the prioritized infrastructure building projects and regional development programs. However, the participation of the financial institutions in the regional development is often restricted as they cannot accumulate the resource needed to support the large projects that can meet the requirements set by the customers who are interested in making investments into the production sector. The author takes the example of the Tyument Region and examines the ways of making the regional banking sector investors more active as far as the investment-making is concerned