Banking Sector Lending Activity Stimulation to Promote Economic Growth

Abstract

The subject of the study is the banking sector credit activity in Russia and the factors that determine it. The relevance is due to the fact that the changed external political and macroeconomic conditions, the growing role of the banking sector in economic development challenge researchers to determine ways to stimulate bank lending activity. The purpose of the study is to identify measures to stimulate bank lending activity. Scientific novelty includes the identification of the factors influencing the lending activity of banks. The research methodology is based on statistical modeling using a linear model on panel data. The statistical database includes indicators for 26 main banking groups, the study period is 6 years (from 2015 to 2020). We proposed a hypothesis that the banking sector lending activity depends on macroeconomic and industry factors, as well as that there is a difference in this influence in the short and long term. As a result of the empirical study, this hypothesis was not rejected. Conclusions. Based on modeling, we suggested some legislative and regulatory measures to stimulate the lending activity of banks.

Keywords

• banks
• banking regulation
• economic growth
• banks’ lending activity
• factors of lending activity
• lending incentives
• banking groups