This piece somehow managed to whitewash what is quite possibly the most corrupt sector in the entire economy. Russia has thousands of little banks, many of which are owned by one person and contain a couple of hundred dollars or so. They are used primarily to launder money.
If anybody wants to come to Russia and make a lot of money illegally, here's what you do. Buy a business. Then, under another name, set up a bank. Get your bank to loan your business a couple of million dollars. Pocket $1,750,000 and spend the remaining cash on cosmetic improvements to your business. Then, write up a fake report saying how you spent all the money on investment. Instant wealth!
Chris Doss The Russia Journal
------------- What role for commercial banks in the evolution of Russian capitalism?
Russia’s commercial banks have played a relatively minor role in the country’s economic development since the collapse of the Soviet Union. Indeed, their impact has often been negative. And they are unlikely to make a major contribution in the future. These are the conclusions of new ESRC-funded research by Dr David Lane of Cambridge University.