Analysis of the structure and dynamics of development of the banking sector of the Russian Federation

In Russia, there is a two-tier banking system in which commercial banks play an important role. They serve not only enterprises, but also the country’s population. The main goal of any bank is to obtain the maximum possible profit. The banking system in the country’s economy is one of the central places. It includes: Bank of Russia; credit organizations; representative offices of foreign banks. Currently, there is a recovery in the banking sector of Russia after the stagnation of 2015-2016. Nevertheless, the massive reduction in credit institutions and the simultaneous emergence of new players, such as fintech companies, non-banks and non-banking companies, significantly change the structure of competition in the market, as well as reduce the profitability of traditional banking. The authors in this scientific article conducted a statistical analysis of the development of the banking system of Russia; estimated banking sector concentration by assets; loans and other placed funds; deposits of individuals and the amount of capital. Based on the study, the authors concluded that the Russian banking system has a chance to become one of the most advanced in the world, and for the development of the banking sector of the Russian Federation, Russian banks should gradually introduce business innovations - new banking products based on digital technologies and non-banking products created in partnership with third parties.