Open AccessBanking competition as the basis of investment demand
Author(s) -
Marina Bogatyreva,
Maria Balashova,
N V Matveev
Publication year - 2021
Publication title -
iop conference series. earth and environmental science
Language(s) - English
Resource type - Journals
eISSN - 1755-1307
pISSN - 1755-1315
DOI - 10.1088/1755-1315/751/1/012135
Subject(s) - monopolization , competition (biology) , interest rate , investment (military) , market power , economics , monetary economics , market economy , business , monopoly , ecology , politics , political science , law , biology
The article is devoted to the analysis of the situation when one bank in the market has excess market power. This concentration of assets negatively affects the state of competition in the Russian banking sector. This is evidenced by the downward inflexibility of interest rates, which is observed in all segments of household lending. High interest rates, in turn, hinder an increase in investment and consumer demand from Russian firms and households. This trend towards inflexibility of nominal and real interest rates in the Russian economy is confirmed by empirical data in recent years. In addition, the article compares the dynamics of interest rates in Russia and the United States in comparable periods of time. Based on these data, the authors come to the conclusion about a high degree of monopolization of the Russian banking market.