Regional Banking Systems and Investment Processes (press-release)

Authors: Drobyshevskiy S., Trunin P., Troshkin D., Chetverikov S., Lederman L.

This work is aimed at the study of the state of regional banking system in the Russian Federation and revealing their influence on the investment processes (investments in the real sector of economy) in the regions. The authors analyzed main characteristics of regional banking systems. Aggregate characteristics of regional banking systems were constructed with the help of the factor analysis method. Six cluster regions were revealed. The authors built an econometric model which allows analyzing the influence of regional banking systems on the investment processes. This work includes analysis of formation of the banking systems of Canada as an example of evolution of regional banking systems in the single national banking net. Theoretical and practical conclusions and economic policy recommendations were formulated on the basis of research findings.

The research and the publication were undertaken in the framework of CEPRA (Consortium for Economic Policy Research and Advice) project funded by the Canadian Agency for International Development (CIDA).