Vernikov, Andrei (2010): Direct and indirect state ownership on banks in Russia. Published in: Corporate Ownership and Control , Vol. 8, No. 1, Special Conference Issue 2 (November 2010): pp. 7-18.
This is the latest version of this item.
Download (620kB) | Preview
This paper uses the banking industry case to show that the boundaries of public property in Russia are blurred. A messy state withdrawal in 1990s left publicly funded assets beyond direct reach of official state bodies. While we identify no less than 50 state-owned banks in a broad sense, the federal government and regional authorities directly control just 4 and 12 institutions, respectively. 31 banks are indirectly state-owned, and their combined share of state-owned banks’ total assets grew from 11% to over a quarter between 2001 and 2010. The state continues to bear financial responsibility for indirectly owned banks, while it does not benefit properly from their activity through dividends nor capitalization nor policy lending. Such banks tend to act as quasi private institutions with weak corporate governance. Influential insiders (top-managers, current and former civil servants) and cronies extract their rent from control over financial flows and occasional appropriation of parts of bank equity.
|Item Type:||MPRA Paper|
|Original Title:||Direct and indirect state ownership on banks in Russia|
|Keywords:||Russian banks; state; government; public sector; state-owned banks; state-controlled banks|
|Subjects:||P - Economic Systems > P4 - Other Economic Systems > P43 - Public Economics ; Financial Economics
P - Economic Systems > P3 - Socialist Institutions and Their Transitions > P31 - Socialist Enterprises and Their Transitions
G - Financial Economics > G2 - Financial Institutions and Services > G28 - Government Policy and Regulation
G - Financial Economics > G2 - Financial Institutions and Services > G21 - Banks ; Depository Institutions ; Micro Finance Institutions ; Mortgages
|Depositing User:||Andrei Vernikov|
|Date Deposited:||16. Apr 2012 18:11|
|Last Modified:||02. Mar 2013 04:49|
Babayev S. (2007), Kakoy bank mozhno nazvaty gosudarstvennym (Which banks can be called state-owned banks), Dengi i kredit, 7, 58-61. Moscow. – in Russian.
CBR (2009), Otchet o razvitii bankovskogo sektora i bankovskogo nadzora v 2008 godu, Bank of Russia, Moscow.
EBRD (2009), Transition Report 2009, European Bank for Reconstruction and Development, London.
Frye T. (2002), Capture or exchange? Business lobbying in Russia // Europe-Asia Studies 54 (7), 1017–36.
Fungáčová Z., Poghosyan T. (2009), Determinants of bank interest margins in Russia: Does bank ownership matter? – BOFIT Discussion Papers DP 22/2009, Bank of Finland, Helsinki.
Fungáčová Z., Solanko L., Weill L. (2010), Market power in the Russian banking industry. - BOFIT Discussion Papers DP 3/2010, Bank of Finland, Helsinki
Glushkova E., Vernikov А. (2009), How big is the visible hand of the state in the Russian banking industry? – MPRA Paper No. 15563, June 2009. Munich University Library.
Glushkova E. (2010), “State banks as financial intermediaries: Comparative analysis in the Russian context”, conference paper, 11th International Conference of ASPE, GSOM of St. Petersburg State University, St. Petersburg, March 5-6, 2010. Mimeo.
Interfax (2010), www.interfax.ru
Karas A., Schoors K., Weill L. (2008), Are private banks more efficient than public banks? Evidence from Russia. - BOFIT Discussion Papers DP 3/2008, Bank of Finland, Helsinki.
La Porta R., López-de-Silanes F., Shleifer A. (2002), Government ownership of banks // Journal of Finance 57 (1), 265–301.
Morck R.K., Steier L. (2005), The global history of corporate governance – an introduction, NBER Working Paper 11062, Cambridge MA.
Raiffeisen (2009), CEE Banking Sector Report, June 2009. Raiffeisen Zentralbank Österreich AG and Raiffeisen Centrobank AG. Vienna.
RBK (2009), Rosbizneskonsalting, http://rating.rbc.ru/category.shtml?method/925574
Schoors K. (2000), A note on building a database on Russian banks: Fieldwork against the odds, Post-Communist Economies 12 (2), 241–249.
Vernikov A. (2007), Russia's banking sector transition: Where to? – BOFIT Discussion Papers DP 5/2007, Bank of Finland, Helsinki.
Vernikov A. (2009), Russian banking: The state makes a comeback? – BOFIT Discussion Papers DP 24/2009, Bank of Finland, Helsinki.
Yakovlev A. (2006), The evolution of business – state interaction in Russia: From state capture to business capture? Europe-Asia Studies 58 (7), 1033-56.
Available Versions of this Item
Direct and indirect state ownership on banks in Russia. (deposited 16. Mar 2010 13:14)
- Direct and indirect state ownership on banks in Russia. (deposited 16. Apr 2012 18:11) [Currently Displayed]