Subject We study the trends of post-crisis development of the financial systems in Russia's regions. Objectives The aim of this paper is to clarify a convergence-divergence vector of the level of development of the financial systems in Russia's regions. In addition, we are trying to discover the relationship between a local banking sector's characteristics and macro-regional indicators: output, investment, productivity. Methods For the study, we used some composite indexes of density of banking services in Russian regions, as well as a graphical method, variation measurement, and the regression analysis. Results The paper shows the trend towards divergence of the development of regions taken in the specific classification, by composite banking service density index and its individual components, since 2012. A savings index plays a major part in this divergence. The regions with low gross regional product show a more noticeable and sharp fall in financial density index of banking services. Conclusions The detected trends are clearly negative. They themselves and their underlying causes may become significant factors to slow the processes of convergence of regions, to increase regional inequalities and reduce the growth potential of the Russian economy. Some of these causes are a structural change of the institutional component of financial system toward more affluent in per capita GDP constituent entities of the Russian Federation, the uneven distribution of Government support measures in the banking system, the disregard of the problem of lack of financial literacy of the population in the regions.
Keywords: financial market, financial systems, economic development, banking system
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