An optimistic scenario
Category: Bank Management
Stabilization leads to the creation of a completely convertible currency. The government manages to keep a balanced budget. Subsidies are cut to a large extent. The initially inefficient allocation of ownership rights is corrected on the financial markets that become highly liquid and attract foreign capital. Shareholders and banks exert efficient corporate control and property rights are enforced by a well-functioning and fair legal system.
Consequence for banks: Banks have to compete with international competitors, only the most efficient ones survive and the banking sector becomes comparable to the ones in the EU or the US.
Unfortunately, this scenario is not very realistic for CIS countries, and will remain a long-term goal of economic reforms. However, it may be that Russian banks will soon have to compete with foreign competitors on markets like St. Petersburg, Nizhny Novgorod and Moscow.