Development of the Russian Banking System

The transition period of the market reforms in Russia allows the selection of the three phases of the national banking system developments. Each phase is characterized by the state of the national banking system connects with the certain model of the Russian economic developments. The contents of the first phase (1988-1998) were the appearance of the private banks, their developments under the provided privatization process and the rapid growth of the domestic debt market. Exactly the debt model of the Russian economic development determined the system financial crises in August 1998, which governed the crisis of the national banking system and led to bankruptcy of the some biggest commercial banks. Thus the second phase connects with the process of the national banking system recovery after that crisis. Third phase assumes the further positive developments of the national banking system under the task of the production rates acceleration – exactly this aim turns to be the key for the Russian economy in the medium-run.

§1. Introduction ………………………………………………………………...… 3
§2. The Appearance of the Russian Banking System in the Transition
Period (1988-1998) ……………………………………………………...….... 4
§3. The Recovery of the Russian Banking System After the System
Financial Crises in August 1998 (September 1998 -2002) …………….…….. 6
§4. The Current State and the Prospects for the Future Developments
of the National Banking System (2003 - 2006) ……………………………...…… 8