Analysis of the Russian Banking System Institutional Saturation Over the Past Decade

This article analyses the development of the Russian banking system over the past 10 years and studies its tendencies. The leading tendencies revealed are (a) the annual decrease of the number of banks and (b) redistribution of assets between existing groups of banks leading to concentration and centralization of the banking system. The author forecasts the number of banks in Russia in the next few years in case the mentioned tendencies persist. The article analyses the regions, in which the number of banks decreased most significantly. The example of these regions shows what negative consequences the liquidation of local banks brings to the regions and why big banks are not always able to solve such problems. The author outlines possible ways to preserve the diversity of financial institutions, which is necessary for the harmonious development of individual regions' economics in Russia.