THE BANKING SECTOR: ECONOMIES OF SCALE AFOOT

Mikhail Khromov

Russian Economic Development, 2015, issue 12, 41-44

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.

Keywords: Banking sector; Russian Economy (search for similar items in EconPapers)
JEL-codes: E21 E41 E51 E58 G21 (search for similar items in EconPapers)
Date: 2015
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