RETAIL LENDING SAGNIFICANCE AND PROSPECTIVES IN THE RUSSIAN ECONOMY

Abstract

Present conditions of Russian economy and banking sector development can be characterized by growth rate reduction of macroeconomic performance. Decrease in personal incomes and expenses for consumer needs influenced demand for credit recourses. However loan service diverts a part of personal income that could be transformed into savings. Savings outflow from the banking sector lead to decrease in takeover bid. In this situation retail lending development regarding crises factors will contribute to economic progress and living standards improvement. The article represents lookback analyses of retail lending development, retail lending share in Russian banks loan portfolio, retail lending quality and efficiency. The factors influencing retail lending are shown on basis of bank statistics. Considering analytical findings retail side of lending market and its development prospects are suggested. Theoretical and practical conclusions can be used in further research and retail strategy development of a trading bank. Development prospects of retail lending in 5 years are based on two key factors that have a range of contributing scenario. In order to choose definite scenario a range of factors is represented in the article, that will help retail lending development in Russian banks.