BANK LOAN MARKET AND ECONOMIC GROWTH IN RUSSIA (ON THE EXAMPLE OF THE ALTAI KRAI)

Abstract

The unevenness of development and differentiation of Russian regions in connection with the access to
markets and financial deepening become a barrier for economic growth under the transition economy. The predominance of the banking sector in the structure of the financial market of the Russian Federation and the tightening of conditions in the credit market creates increased risks for the economic growth of peripheral regions. The purpose of the article is to study the influence of the financial market (bank lending sector) on the economy of the Altai Krai. A series of statistical data for the period of 2001–2016 are built to test the hypothesis about the connection between financial development and economic growth in the region. The research is based on the official data of the Russian Federal State Statistics Service and the official website of the Bank of Russia. It is revealed, that the trend of outstripping the growth of credit resources in the economy as compared with the growth of gross regional product during the period under study continued. According to indicators of financial depth, the development of the banking sector in the region is positioned at the secondary  level. While the increase in the depth of the financial market in the segment of banking capital in the region is highly correlated with a decrease in the growth of the gross regional product. According to the results of regression analysis, there is a negative dependence between the growth of gross regional product and financial depth indicators for the sectors attracting deposits and providing loans.