Year of Graduation
Analysis of Efficiency of Banking Sector in the Russian Federation
School of Statistics, Data Analysis and Demography
The aim of this study is to reveal the definition of the banking system and factors affecting the efficiency it.In order to achieve the aim, the following objectives were formulated:To give a definition to the banking system and provide an overall approach for banking efficiency evaluationTo analyze Russian banking system development during last years and determine market tendencies and identify business models of the largest Russian banks.To calculate the efficiency of the banking system on the basis of inhomogeneityThe object of this paper is financial activity of the Russian banking sector.Foreign and domestic authors researches of the structural concept of evaluation the effectiveness of banks, segmentation of the banking sector; domestic researchers works on the analysis of the size, structure of Russian banks ownership and strategies of running banking business have become the theoretical basis of the research.The paper is structured as followed:· The first chapter considers different approaches to definitions of the banking system and factors that affect the banking system· The second chapter gives a description of Russian banking system during the period 2007 – 2012. The most common characteristics are identified and descriptive statistics for its development are given. Also the section is devoted to the description of econometric models that are used to evaluate the efficiency of banking system. It describes the data used in the research, proposes a number of hypotheses and statistical methods used in it.As a result of the study, inhomogeneity of the banking system is proved by the number of individual fixed effects that take place in the model. Using stochastic frontier, different ratios to calculate banking efficiency are determined. The paper demonstrated the dependence of the banking system on the certain type of banks, such as banks with governmental capital, private banks, non-residential banks and regional banks. According to the model, banks with a foreign capital demonstrate the highest level of efficiency and regional banks perform better than federal in the pre-crisis period.