National Champions and the Competitive Structure of the Russian Banking Market
Andrei Vernikov ()
Voprosy Ekonomiki, 2013, issue 3
Abstract:
We assess the effect that the industrial policy of growing state-controlled national champions in Russia had on concentration and competitiveness of the banking system in 2000—2012. A modified method of calculating the indicators of market concentration suggests that the main segments of the market have crossed the threshold of high concentration, whereas the household deposits market has approached a monopoly situation. Supremacy of public banks enhances their market power and enables collecting rent that boosts profitability. We suggest that Russia’s industrial policy in banking might be similar to that of China.
Date: 2013
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Persistent link: https://EconPapers.repec.org/RePEc:nos:voprec:y:2013:id:520
DOI: 10.32609/0042-8736-2013-3-94-108
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