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Challenges of developing the banking sector in the Chechen Republic under current circumstances

Taimaskhanov Kh.E. Grozny State Oil Technical University named after Academician M.D. Millionshchikov, Grozny, Chechen Republic, Russian Federation ( rectorggntu@gmail.com )

Musaev R.A. Lomonosov Moscow State University, Moscow, Russian Federation ( rasmous@mail.ru )

Reshiev S.S. Chechen State University, Grozny, Chechen Republic, Russian Federation ( budgetdepchech@mail.ru )

Journal: Financial Analytics: Science and Experience, #44, 2015

Importance It is very reasonable to examine trends in the banking sector of the Chechen Republic and determine what will ensure its effective operations in ever increasing demand for banking services.
     Objectives The research determined prospects and priority areas for developing the banking system of the Chechen Republic during the regionalization and globalization of the world economy.
     Methods The research is based on a system analysis of the sector for the specific period, and various statistical methods. Relying upon the analysis, we evaluate the efficiency of the republican banking sector.
     Results As the research shows, the banking sector has yet to evolve in the Chechen Republic, accounting for a very small market share. The article proposes an effective algorithm for setting up the robust banking sector within a short period of time. The modified version of the algorithm may be applied in other regions.
     Conclusions and Relevance We provide our conclusion on that the regional policymakers should address some specific issues to create the effective banking sector in the Chechen Republic and integrate the Chechen Republic into the single socio-economic processes nationwide and worldwide.


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