Finance and Credit
 

Abstracting and Indexing

РИНЦ
Referativny Zhurnal VINITI RAS
Worldcat
LCCN Permalink
Google Scholar

Online available

EBSCOhost
Eastview
Elibrary
Biblioclub

Archiving

Cyberleninka (24 month OA embargo)

The dynamics of structural developments in banking as an indicator of the regulatory efficiency

Vol. 26, Iss. 4, APRIL 2020

Received: 10 February 2020

Received in revised form: 25 February 2020

Accepted: 10 March 2020

Available online: 28 April 2020

Subject Heading: Financial system

JEL Classification: C54, C58, D47, G14, G18

Pages: 744–756

https://doi.org/10.24891/fc.26.4.744

Semenychev E.V. Sevastopol Branch, Plekhanov Russian University of Economics (PRUE), Sevastopol, Russian Federation
semen05@inbox.ru

https://orcid.org/0000-0002-9604-4344

Demidov V.V. Samara University of Public Administration – International Institute of Market (MIR), Samara, Russian Federation
vadidemidov@yandex.ru

ORCID id: not available

Subject. The article discusses the structure of the banking market in Russia, its dynamics and determines how it deviates from its Pareto optimality.
Objectives. We evaluate the efficiency of public administration, outline and develop economic and mathematical methods and techniques to support the decision-making process in the governmental regulation of Russia’s banking.
Methods. The market power of a banking market actor is quantified with the amount of its balance sheet currency as a comprehensive indicator of its business performance and activity. Doing so, we quantify the economic potential of diverse market actors in banking, which have their own operational distinctions and working in different segments. We choose the traditional paradigm of structural evaluation methods as the key methodological principles. It ensures the corresponding result. The approach helps use official and publicly available statistics of the banking market (statistical data of the Central Bank of the Russian Federation) to assess the optimality of the overall banking structure in the Russian Federation by studying how certain market actors allocate their assets.
Results. We did the ABC analysis of the banking market structure in Russia within 2007 through 2019, pointed out groups A, B and C and reviewed their composition.
Conclusions and Relevance. We conclude that the banking market that has existed in Russia for the recent 13 years seems to fall short of the theoretically effective one as per the Pareto principle, with its dynamics being unfavorable and fueling the market concentration. The sustainability of the banking market requires more banks from group A, higher efficiency needs less banks from group C, which makes banking regulators intervene the market by setting and adopting respective requirements to market actors.

Keywords: market structure, ABC analysis, Pareto optimality, public administration

References:

  1. Porter M.E. (ed.) Competition in Global Industries. Boston, Harvard Business School Press, 1986, 581 p.
  2. Chamberlin E.H. Teoriya monopolisticheskoi konkurentsii [Theory of Monopolistic Competition]. Moscow, Ekonomika Publ., 1996, 349 p.
  3. Azoev G.L. Konkurentsiya: analiz, strategiya i praktika: monografiya [Competition: Analysis, Strategy and Practice: a monograph]. Moscow, Tsentr ekonomiki i marketinga Publ., 1996, 206 p.
  4. Hirschman A.O. The Paternity of an Index. The American Economic Review, 1964, vol. 54, no. 5, p. 761.
  5. Lerner A.P. Ponyatie monopolii i izmerenie monopol'noi vlasti. V kn.: Vekhi ekonomicheskoi mysli: khrestomatiya. T. 5. Teoriya otraslevykh rynkov [The concept of monopoly and measurement of the monopolistic power. In: Milestones in Economic Thought Volume 5 Theory of Industrial Markets]. St. Petersburg, Moscow, Ekonomicheskaya shkola, GU-VShE, TEIS Publ., 2003, pp. 536–566. (In Russ.)
  6. Panzar J.C., Rosse J.N. Testing for “Monopoly” Equilibrium. The Journal of Industrial Economics, 1987, vol. 35, no. 4, pp. 443–456. URL: Link
  7. Svetun'kov S.G. Teoriya mnogourovnevoi konkurentsii [The theory of the multi-tiered competition]. Moscow, URSS, Lenand Publ., 2019, 302 p.
  8. Khmeleva K.E. [Creation of analytical models to assess the competition level on banking]. Vestnik Samarskogo munitsipal'nogo instituta upravleniya = Bulletin of Samara Municipal Institute of Management, 2018, no. 4, pp. 7–14. (In Russ.)
  9. Shvedova I.E., Kuznetsova T.E. Kniga direktora po marketingu proizvodstvennogo predpriyatiya [The handbook for the marketing director of the industrial enterprise]. St. Petersburg, Piter Publ., 2009, 432 p.
  10. Podinovskii V.V., Nogin V.D. Pareto-optimal'nye resheniya mnogokriterial'nykh zadach: monografiya [The Pareto optimality solutions to multivariate tasks: a monograph]. Moscow, Fizmatlit Publ., 2007, 255 p.
  11. Semenychev V.K., Semenychev E. V. Parametricheskaya identifikatsiya ryadov dinamiki: struktury, modeli, evolyutsiya: monografiya [The parametric identification of time series: Structures, models, evolution: a monograph]. Samara, Samara Research Centre of RAS Publ., 2011, 364 p.
  12. Afanas'ev V.N., Semenychev E.V. [Performance criteria of models of economic dynamic]. Vestnik Samarskogo munitsipal'nogo instituta upravleniya = Bulletin of Samara Municipal Institute of Management, 2014, no. 2, pp. 7–17. (In Russ.)
  13. Coase R.H. The Problem of Social Cost. Journal of Law and Economics, 1960, vol. 3, pp. 1–44. URL: Link
  14. Golubkov E.P. [The ABC and XYZ-analysis: The Analysis per se and performance appraisal]. Marketing v Rossii i za rubezhom = Marketing in Russia and Abroad, 2010, no. 3, pp. 12–23. (In Russ.)
  15. Sysoeva S.V., Buzukova E.A. Kategoriinyi menedzhment [Category Management]. St. Petersburg, Piter Publ., 2018, 400 p.

View all articles of issue

 

ISSN 2311-8709 (Online)
ISSN 2071-4688 (Print)

Journal current issue

Vol. 26, Iss. 5
May 2020

Archive