Russian Banking System and Financial Globalization

Abstract

The research presents an overview of the Russian banking sectors and identifies the role of foreign financial institutions in comparison to local banks. The author shares his personal views on consequences of foreign investments in the capital of Russian banks in light of long expected Russian entry into WTO. Based on number of quantitative parameters the author demonstrates ever increasing role of foreign banks in the Russian financial market. Nevertheless, it is stressed in the research that current levels of foreigners' participation are still comparatively low. That enables the author to argue that widespread talks about the threat to national security are largely exaggerated.