The potential for the development of regional banking in the retail credit market
Abstract
The study examines the development prospects of regional banks using the retail credit market as an example. Based on statistical data from recent years, the current market positions of regional banks in the context of the credit market were determined. It is noted that the reason for maintaining a positive financial result of local banks was an increase in the share of loan portfolios in their total assets. This trend is determined by the actualization of the key advantages of regional banks within the framework of a personalized approach to the demand for credit products in the context of sanctions pressure on large credit institutions. The article focuses on the fact that the total share of regional banks in the credit market of both retail and corporate lending remains low in the context of competition with federal banks. To determine the main factors influencing retail lending of the regional bank, a correlation and regression analysis of the retail loan portfolio of JSC “BANK ORENBURG” was conducted. Based on the results obtained, it is substantiated that the regional bank has the potential to expand the boundaries of the credit business in the context of deteriorating economic conditions while maintaining an adequate level of credit risk of the retail loan portfolio. The author raises the issue of the need to support the business model of “local” banks in order to increase competition and the quality of credit products in the market, including in the absence of negative foreign economic factors.
About the Authors
N. I. Konovalova
Orenburg State University
Russian Federation
Russian Federation
Doctor in Economics, Professor
K. A. Nikolaev
Orenburg State University
Russian Federation
Russian Federation
Postgraduate Student
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Review
For citations:
Konovalova N.I., Nikolaev K.A. The potential for the development of regional banking in the retail credit market. Kazan economic vestnik. 2024;1(5):11-21. (In Russ.)
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