Banking System of Russia in Context of Spread of Coronavirus Pandemic

Abstract

This article evaluates the situation in the Russian banking system under the current world economic crisis due to the coronavirus pandemic. It presents a comparison of the causes of the current and the previous economic crises, investigates state support measures, and the consequences of the crises of 2008–2009 and 2014–2015 for the Russian economy. It claims that this time the banking system was better prepared than previously. The authors identify the key problems for the banking sector in the current situation. The possible consequences of implementing various scenarios for banks are assessed. Further, the authors analyze the state support measures for the banking sector implemented by the Bank of Russia. The article stresses the importance of the banking system for the country to overcome the economic recession caused by the crisis. The article also underlines that state support had a positive effect on the country’s companies. The authors analyze the long-term development prospects of the Russian banks and their current activities. Key development areas for the banking system are identified, including the transformation of the range of services rendered and the new forms of interacting with the customers. The research was carried out on the statistics from official sources in Russia and abroad, as well as the academic writings of Russian experts. With a view to the abovesaid, the authors conclude that state support has a decisive effect on the process of overcoming economic crises and increasing the competitive edge on the global market.