Direct and indirect state ownership on banks in Russia
This paper uses the banking industry case to show that the boundaries of public property in Russia are blurred. A messy state withdrawal in 1990s left publicly funded assets beyond direct reach of official state bodies. While we identify no less than 50 state-owned banks in a broad sense, the federal government and regional authorities directly control just 4 and 12 institutions, respectively. 31 banks are indirectly state-owned, and their combined share of state-owned banks’ total assets grew from 11% to over a quarter between 2001 and 2010. The state continues to bear financial responsibility for indirectly owned banks, while it does not benefit properly from their activity through dividends nor capitalization nor policy lending. Such banks tend to act as quasi private institutions with weak corporate governance. Influential insiders (top-managers, current and former civil servants) and cronies extract their rent from control over financial flows and occasional appropriation of parts of bank equity.
|Date of creation:||Mar 2010|
|Date of revision:|
|Contact details of provider:|| Postal: |
Web page: http://mpra.ub.uni-muenchen.de
More information through EDIRC
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Zuzana Fungacova & Laura Solanko & Laurent Weill, 2010.
"Market Power in the Russian Banking Industry,"
Working Papers of LaRGE Research Center
2010-09, Laboratoire de Recherche en Gestion et Economie (LaRGE), Université de Strasbourg.
- Fungáčová, Zuzana & Poghosyan, Tigran, 2011.
"Determinants of bank interest margins in Russia: Does bank ownership matter?,"
Elsevier, vol. 35(4), pages 481-495.
- Fungacova, Zuzana & Poghosyan, Tigran, 2009. "Determinants of bank interest margins in Russia: Does bank ownership matter?," BOFIT Discussion Papers 22/2009, Bank of Finland, Institute for Economies in Transition.
- Randall Morck & Lloyd Steier, 2005.
"The Global History of Corporate Governance: An Introduction,"
in: A History of Corporate Governance around the World: Family Business Groups to Professional Managers, pages 1-64
National Bureau of Economic Research, Inc.
- Randall K. Morck & Lloyd Steier, 2005. "The Global History of Corporate Governance: An Introduction," NBER Working Papers 11062, National Bureau of Economic Research, Inc.
- Glushkova, Ekaterina & Vernikov, Andrei, 2009. "How big is the visible hand of the state in the Russian banking industry?," MPRA Paper 15563, University Library of Munich, Germany.
- Vernikov , Andrei V., 2007. "Russia's banking sector transition: Where to?," BOFIT Discussion Papers 5/2007, Bank of Finland, Institute for Economies in Transition.
- Vernikov, Andrei, 2009. "Russian banking: The state makes a comeback?," BOFIT Discussion Papers 24/2009, Bank of Finland, Institute for Economies in Transition.
When requesting a correction, please mention this item's handle: RePEc:pra:mprapa:21373. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Ekkehart Schlicht)
If references are entirely missing, you can add them using this form.