Russian stablization policy and the banking sector, as reflected in the portfolios of Moscow banks in 1995-97

Abstract

The study analyses developments in the structure of Moscow banks' balance sheets, returns and costs of their different banking operations, as well as the banks' profitability, liquidity and capital adequacy.The analysis covers the years 1995-1997 when Russia was attempting to pursue a macroeconomic policy aimed at monetary stabilisation.An assessment is also given of the problems which were evolving in the Russian banking system before banks were hit by Russia's financial crisis in summer 1998. The analysis itself presents rather detailed data on the balance sheets and banking operations of a large sample of banks registered in Moscow; at the peak, the sample consisted of 688 banks. Keywords: Russian banks, bank credit, Treasury bills, deposits, interest rates, bank regulation