Spatial Inequality in Ownership and Activity of Banking Sector: Case of Russia
Spatial Inequality in Ownership and Activity of Banking Sector: Case of Russia

Author(s): Marina Yuryevna Malkina
Subject(s): Business Economy / Management, Micro-Economics, Transformation Period (1990 - 2010), Present Times (2010 - today)
Published by: Masarykova univerzita nakladatelství
Keywords: region; banking system; unevenness; assets; convergence;
Summary/Abstract: Our study is aimed at evaluation of spatial inequality in ownership and activity of commercial banks of Russian Federation in 2001-2016. The level of interregional inequality in banking sector was assessed for its assets, financial results, attracted deposits and provided loans, which were calculated both per capita and as their ratio to GRP of regional economies. To eliminate the effect of price level on the variables in time series we determined their real values using the cumulative GRP-deflator indices. The inequality in spatial distribution of assets, liabilities and financial results of banking sector was evaluated by means of the weighted coefficients of Gini and variation and tested for - and -types convergence. We found significant growth of the spatial concentration of ownership and management of assets in Russian banking sector accompanied by low and cyclical concentration of financial results (net profits) within the sector, which meantime increased noticeably last year. At the same time, banking activity demonstrated much lower and sometimes diminishing regional disparities. First of all, we observed decrease in spatial inequality in the level of lending to enterprises and population, and the both types of convergence were proved for them. This trend was opposite to the growth of interregional disparities in the average personal deposits and almost nil change in inequality of the deposits of enterprises. We concluded that discrepancy between distribution of ownership on assets and actual implementation of banking activity, in combination with high interest rate (cost of capital), contributed to further redistribution of financial resources of the periphery in favor of the center and prevented the improvement of financial position of backward regions.

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