Serious, competitive reform to the banking system is essential if the state banks' legacy of poor profitability and high non-performing loans is not to continue jeopardising the country's prospects for growth.

ECONOMIST: Problems left over from history

They studied the banking sectors of 221 countries and territories and found that the nearer a country was to a tax haven, the more competitive and efficient its banking system appeared to be.

ECONOMIST: The less obvious uses of tax havens

If distorted competitive conditions, rather than bad corporate governance and no proper banking system, are a main cause of Russia's plight, this should come as no surprise.

ECONOMIST: Russia��s economy

In essence, he was directly battling the British central banking system in its attempt to keep the pound artificially competitive in foreign exchange markets.

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