Banking Sector of Russia in Terms of Joining the WTO

<p style="text-align: justify;">The Eighth Ministerial Conference formally approved of the Accession Package of the Russian Federation on 16 December 2011, and on 22 August 2012 after 18 years of negotiations WTO welcomed the Russian Federation as its 156th member. This means that Russia is being fully affected by the process of globalization expanding international financial relations, intensifying the capital flow and competition in different sectors of economy. Commercial banks&rsquo; activity is comprehensive and not limited only by accumulation or allocation of funds. The banking system as a mechanism of the capital flow in different production branches is now the significant element in economic growth financing. Therefore the analysis of international integration influence on the Russian banking sector plays a crucial role in better understanding of globalization effect on the whole national economy.</p><p style="text-align: justify;">On the one hand the WTO entry may allow to liberalize the Russian banking system, improve the capitalization of national banks and increase competition in the banking sector, which should spur Russian banks to develop their competitive advantages. Besides large national banks are being provided with an opportunity to diversify their activities into international financial markets. However, on the other hand, the WTO accession may be the reason for loss of control over the banking system and then over the economy. The non-discrimination principle suggesting establishing the same legal regime for both resident and non-resident banks harms the national economy.</p><p style="text-align: justify;">The present graduate qualification work is devoted to the major problems of Russia&rsquo;s banking sector under the WTO and evaluating its prospects in terms of globalization. The problem of the research is generally based on assumption whether foreign banks will be able to operate in the Russian banking market. In order to estimate the possibility of foreign banks entry we have conducted an analysis of the current situation on the Russian banking sector, its legal basis, conditions of the WTO accession and the ability to resist the intervention of foreign banks. For a deeper insight into the problem important research components are consideration of foreign countries&rsquo; experience in retrospect and Basel III transition.</p>