Оценка влияния банковского сектора на экономическое развитие регионов России в условиях санкций

Аннотация

A substantial influx of finance functions as a crucial determinant of regional development through economic modernization in Russia. The Russian banking sector conceives enormous potential to contribute to this economic diversification for growth by extending cost-effective capital to regional businesses. However, due to the imposition of sanctions and the heterogamous regional business environment, access to finance has become increasingly critical for the private sector. It is therefore important to comprehend the complex dynamics of the Russian banking sector and regional development amid contemporary economic and geopolitical scenarios. Multiple rationales contribute to the significance of this research topic. First, Banks create new capital in the economy, allocate that capital efficiently to the private sector, and drive inclusive economic development. By mobilizing savings and lending these out for the production of new capital assets, banks ensure capital formation for the businesses. Besides, a robust credit industry ensures industries' access to external finance for introducing novel technology which then enhances productivity and growth. Moreover, economic diversification follows a complex process, and promoting them often leads to potential dissonance. However, capital markets develop prudential risk management mechanisms to address this consequence. Meanwhile, several market imperfections like trade integration, low business potential, and sanctions influence the role of finance in augmenting regional development in Russia. Amidst this backdrop, this study investigates how the banking sector contributes to economic development in Regional Russia under several market clearing conditions and imperfections. Second, Innovation serves as a vital factor of development in a competitive market economic landscape. Innovation improves production processes, helps businesses diversify products, and affects overall economic growth. However innovative firms require long-term external capital for successfully implementing their projects. Banks are instrumental in providing the necessary capital in this regard. They finance research and development, and support startups, SMEs, and other innovative and export-oriented businesses with working capital and long-term loans. Russia's gradual transition from the command to a market economy necessitates the promotion of innovation-driven regional economic development. The Russian banking sector can contribute significantly to drive nnovation. However, several factors like trade integration, regional business potential, and sanctions affect banks’ innovation financing decisions. By investigating the role of the credit market in fostering innovation and growth under these emerging factors of regional economies, this study tries to shed light on how innovation drives regional economic development through the banking sector in Russia. Third, Russian regions experience limited export diversity due to their dominance in hydrocarbon trade. However, recent geopolitical tensions and cross-border trade barriers drive them to prioritize export diversification for expediting sustainable development. Trade diversification can be a key strategy to mitigate the impacts of sanctions and ensure regional economic resilience. Diversification helps Regions reduce their dependence on specific markets or commodities and resist external shocks. However, Export diversification mandates substantial funding to collect information, do market research, establish distribution networks, tailor products to local preferences, and documentation. The banking sector provides exporters with working capital, trade finance, and risk management to facilitate diversification. Russian banks play a vital role in augmenting trade diversity since local exporting firms resort to private finance to compensate for the recent suspension of several foreign investments. This study therefore intends to explore to what extent the banking sector promotes export diversification under different economic opportunities and threats.