The banking sector rescue in Russia
Ippolito, Filippo (10.12.2002)
Bank of Finland
Julkaisun pysyvä osoite onhttps://urn.fi/URN:NBN:fi:bof-2014080811
The 1998 financial meltdown brought to public attention the vulnerability of Russia s banking sector, which was severely hit by the crisis.The Russian government and the CBR (Central Bank of Russia) acted in a timely manner in setting up a basic intervention plan for the rapid restoration of solvency.Unfortunately, these measures were not followed by a correction of the real problems behind the crisis.The Central Bank and the Russian government failed to exploit a unique chance to carry out significant reforms in the financial sector, leaving unresolved many of the flaws that afflicted Russian banks before the crisis.This paper reconstructs the events surrounding the Russian financial crisis and evaluates the subsequent rescue of the banking sector.