Optimum Structure of the Banking Market: How Many Banks Are Necessary for Russia?

S. Moiseev

Voprosy Ekonomiki, 2006, issue 10

Abstract: The number of classical banks in the world has reduced. In the majority of countries the number of banks does not exceed 200. The uniqueness of the Russian banking sector is that in this respect it takes the third place in the world after the USA and Germany. The paper reviews the conclusions of the economic theory about the optimum structure of the banking market. The empirical analysis shows that the number of banks in a country is influenced by the size of its territory, population number and GDP per capita. Our econometric estimate is that the equilibrium number of banks in Russia should be in a range of 180-220 units.

Date: 2006
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Persistent link: https://EconPapers.repec.org/RePEc:nos:voprec:y:2006:id:1796

DOI: 10.32609/0042-8736-2006-10-75-92

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