Trends of the banking sector functioning in the context of territorial development

The banking sector plays an important role in the development of the country's economy and territories. It plays a primary role in the formation of the system of settlements, domestic and international payments. The banking sector is the subject of monetary emission, the main institutional intermediary of the country's monetary policy, it supports cash fl in the state, and ensures the economic performance. Credit companies are engaged in lending to the economy, carry out the traditional storage of savings on bank deposits, thus acting as a socially signifi ant institution. At the same time, their activities are prone to a large number of risks which makes it the most risky business. The instability of the banking sector leads to disruption of the normal development of the economy and destabilizes the political and social situation. It follows that the role of the banking sector in the economy of any territory is of particular importance and the issue of its development and functioning is relevant to this day. The purpose of the article is to identify the trends and main problems of the banking sector development in the Vologda Oblast. The author proposes the measures to improve the key indicators of the banking system. The research methodology is based on economic and statistical methods, comparative analysis, system analysis, and synthesis. When writing the article, the researcher used scientifi literature by domestic and foreign authors, as well as statistical data from the offi website of the Central Bank of the Russian Federation and the territorial authority of the Federal State Statistics Service for the Vologda Oblast. The results can be useful to the authorities when making fi policy, the scientifi community, researchers involved in the functioning of the banking sector in the context of territorial development.