The role of formal and informal institutions in the development of the banking system

The banking system of the Russian Federation should be considered as a catalyst for the development of the national economy, since the activities of banking sector institutions not only determine the redistribution of financial resources, but also create favorable conditions for investment inflows. It is in this context that the institutional component of the development of the banking system is of particular importance, as well as the formation of a proper institutional environment in the banking services market, which will increase the competitiveness of the banking system. However, the banking system of the Russian Federation, due to the lack of effective institutional development, does not realize its potential in the context of stimulating innovation, improving the activities of individual institutions or expanding their functions, creating fundamentally new institutions of the banking sector, which would increase its competitiveness and stimulate the economic development of the country. The purpose of the article is to assess the role of the institutional environment in the development of the banking sector in the Russian Federation.