Banking sector and banking capital in Russia during crises: Experience of 2008 and 2014

Abstract

© Medwell Journals, 2015. Both economic and financial crises have negative impact on the banking sector and the banking capital. Herewith, the nature of crises may be both local and global. The objective of the study is to quantify losses of the market value of Russian banking capital during crises of 2014. Another purpose of the study is to statistically prove the hypothesis that there is the statistical relationship between the dynamics of banking capital value and the major macroeconomic factors in respect of commodity and foreign exchange markets. The study deals with interdependence of macroeconomic indicators and the banking capital in Russia. Comparative analysis of crises of 2008 and 2014 was performed. Simple correlation coefficients were calculated. The dynamics of foreign exchange rates, crude oil prices in 2008 and in 2014 were also analyzed. Additionally, qualitative indicators of the crises of 2008 and 2014 were described. Conclusion refers to the terms which are necessary to rich a pre-crisis level of the banking capital market value and describes the major macroeconomic indicators.