Zaernyuk V.M.Russian State Geological Prospecting University named after Sergo Ordzhonikidze, Moscow, Russian Federation zvm4651@mail.ru
Subject Regional banks account for less than a quarter of the total number of operating commercial banks in Russia. On the case of territorial divisions, the study shows that such banks do not play a critical role in the infrastructure support to Russian regions. Objectives The aim is to prove the existence of differences in the business environment of regional banks and in market constraints that influence the efficiency of banking operations in regions. Methods We applied econometric models to identify differences in performance ratios of various groups of banks. To test the suggested hypotheses, we used parametric and non-parametric approaches. We also applied a linear model of dependence of the cost of liabilities and performance on various indicators and the balance sheet structure. Results The article presents the criteria to select regional banks from all commercial banks operating in Russia. Except for a few regions, regional banks do not play a significant role in terms of infrastructural provision of financial services to the public and organizations in the region. There is no statistically significant correlation between the number of offices of regional banks and socio-economic development of regions. Conclusions The study does not confirm the existence of statistically significant differences in the efficiency of credit institutions based on their affiliation with a group of regional banks. The interest of all banks in operations in high-yield market segments serves as a possible explanation of the findings. Our empirical results may be interesting for researchers, regional banks, and bank regulators.
Keywords: regional bank, efficiency, Russian banking system, matching
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