Assessment of the competitive environment of the Russian banking market

Despite the current situation, restrictive measures, and reduced demand for both Deposit and credit banking products, the banking sector continues to develop intensively. However, the problem of monopolization of the banking market is becoming more pronounced. The opposition between the largest banks, which occupy a dominant position and receive support from the state, and the rest of the banking sector becomes obvious. The negative consequences of this trend are restrictive competition, increased costs, and changes in the quality of services provided to outsiders. In this paperthe authors evaluated the competitive environment in the banking sector on the basis of concentration ratios and the Herfindahl-Hirschman index. The authors drew a conclusion about the borderline values of indicators, which requires increased attention from regulators for the competitive development of banking institutions. The regulator makes antitrust decisions and develops appropriate projects, for example, in the fast payment system. At the moment, the regulator and the government are focused on issues of maintaining Bank liquidity, ensuring financial stability, and supporting the regions and the population. However, in the face of current crisis and insurmountable factors, more decisive measures will be required on the part of regulatory and Supervisory authorities.