The development features of banking associations in Russia and several aspects of their regulation

Capital accumulation within a group of economic entities with different business cycles and supply of products and services is an effective capital management technique. The study identifies the features, causes and necessity of creating banking associations which provide a basis for the Russian financial system; banking groups and bank holdings are the most common form of them. Despite the need to manage a banking group at different stages of the economic cycle, banks are to focus on risk management in every scope of activity and recognize the legitimate concerns of depositors and investors of the financial market. Both effective (VTB Bank PJSC) and ineffective (Bank Otkritie Financial Corporation PJSC) banking groups are exemplified in the research. The author concludes that the main objective of supervision over banking groups and holdings is to make the financial system more stable by means of the prudential control based on risk analysis, the assessment of the financial situation of lending organizations in view of the financial status of other group members and their affiliates.