Russian Banking

Russian Banking

Evolution, Problems and Prospects

New Horizons in Money and Finance series

Edited by David Lane

Russian Banking considers the rise of commercial market-oriented banks in Russia, their links with government and non-financial companies and their role as intermediaries in the provision of finance for investment. The contributors explore the legacy of the Soviet past and current functions of the Russian banking system, contrasting these with those in other post-communist societies and describing peculiarities such as informal networks and corruption.

Introduction

David Lane

Extract

David Lane In the post-communist societies, the paths of transition to a market and privatized economy are embedded in the legacy of the structure of state socialism. The hegemonic role of the state, as regulator, provider of welfare and owner of economic wealth made state socialism qualitatively different from the capitalist systems of the West. The countries of the former USSR (and particularly the Russian Federation) have not, on a comparative basis, made a successful transition to a market economic system or to a pluralist political order. The research in this volume considers just one element in the transition process: the rise of commercial market-oriented banks, their links with government and non-financial companies and their role as intermediaries in the provision of finance for investment. The contributors also consider the international aspects of Russian banking and particularly the impact and consequences of the financial crisis of 1998. Discussion of economic transformation/transition in the post-communist countries has revolved around the focal points of the introduction of markets and the privatization of assets. The banking system, the role of money and their implications for economic development have been considerations of a secondary order brought into focus as a consequence of the hyperinflation of the early 1990s and the financial collapse of 1998. The essays in this collection are arranged in three parts, the first covering the evolution of the post-communist system of banks and their functioning, the second focusing on governance and the third considering global aspects of Russia’s...