This article raises questions about the need to develop the regional banking sector, considering falling under restrictive measures from unfriendly countries in relation to systemically important banks in Russia. The sanctions affected the exporters and importers transactions, complicated the relationship between counterparties from different countries. Therefore, the development of smaller banks from the regions becomes relevant. Regional banks have some advantages over their larger counterparts and, with proper support from the authorities, can not only carry out settlement operations, but also be involved in infrastructure projects and generate revenues for the region’s budget. The author of the article considers several areas for improving the regional banking sector, which can formally be divided into three main areas: direct support from the regional governments, internal corporate procedures and risk management improvement, implementation of new transactions to attract liquidity for the purpose of lending expanding. These proposals may have an impact on increasing the stability and importance of the regional banking sector and be useful both to the executive authorities of the constituent entities in developing strategies for socio-economic development and to the territorial departments of the Bank of Russia in compiling roadmaps for the banking sector development.
regional banking sector, banks, credit organizations, regional banking sector development, banking sector development tools
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