Investment attractiveness of the banking sector and its role in the financial market system

Abstract

The banking sector plays a system-forming role in the Russian economy, acting as a key element of the financial infrastructure. The main part of cash flows goes through banks: they provide interenterprises payments, collect savings of the population and transform them into loans for businesses and individuals. Without a stable functioning banking system, neither sustainable economic growth nor effective redistribution of resources be-tween industries is possible. In addition, banks are an important tool for implementing the monetary policy of the Bank of Russia, influencing inflation, exchange rate stability and availability of financing. The investment attractiveness of the Russian banking sec-tor remains one of the key topics for economists, investors and regulators. In the context of global instability, sanction pressure and changing monetary policy, the assessment of the investment potential of the Russian banks requires special attention. The relevance of the study of the investment attractiveness of the Russian banking sector is determined by a number of factors. Firstly, after 2022, the sector faced unprecedented challenges, including restrictions on access to international financial markets, outflow of foreign capital, and increased regulation. Secondly, despite external shocks, the Russian banks are demonstrating resilience, which makes them potentially interesting for investors focused on emerging markets. Thirdly, government support, digitalization and the growth of retail lending provide new opportunities for the development of the sector. Furthermore, in terms of global financial architecture transformation, the Russian banking market can become a platform for investments from the BRICS countries and other friendly states.