Contribution of Small Banks to the Level of Competition in the Banking System of the Russian Federation
https://doi.org/10.26794/1999-849X-2023-16-1-67-76
Abstract
The subject of the study is the level of competition in the banking system of the Russian Federation, considered within the framework of the general concept of the Bank of Russia, according to which the absence or weakening of confrontation in the process of interaction and competition between credit institutions and other financial market participants in an effort to secure a strong position in the banking services market can lead to destabilization of the national economy.
The purpose of the work is to determine the level of competition in the banking sector of Russia and to establish the role of small banks in this process based on the application of both classical methods, which include the analysis of market concentration indicators (Herfindahl — Hirschman, Linda indices), and the new SMI concentration index, which is a modification of the market concentration assessment indicator using the approximation of an ordered sequences of market shares of banks’ assets due to the use of the least squares method. The following results are obtained in the article: based on the use of the Linda approach, by calculating the corresponding market power index with the allocation of classes of leaders of the banking system and small banks, the contribution of small banks to the level of competition in the banking system of the Russian Federation is estimated. The conclusion is made about the presence of monopolistic competition in the banking system of Russia.
Keywords
About the Authors
V. A. ByvshevRussian Federation
Victor A. Byvshev — Dr. Sci. (Tech.), Prof., Prof. of the Department of Mathematics,
Moscow.
I. V. Tregub
Russian Federation
Ilona V. Tregub — Dr. Sci. (Econ.), Prof., Prof. of the Department of Mathematics,
Moscow.
M. A. Gross
Russian Federation
Maryana A. Gross — intern in the office of the Chairman,
Moscow.
K. Т. Tazabaeva
Russian Federation
Kamila Т. Tazabaeva — Intern in the General Audit Department,
Moscow.
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Review
For citations:
Byvshev V.A., Tregub I.V., Gross M.A., Tazabaeva K.Т. Contribution of Small Banks to the Level of Competition in the Banking System of the Russian Federation. Economics, taxes & law. 2023;16(1):67-76. (In Russ.) https://doi.org/10.26794/1999-849X-2023-16-1-67-76