Serious, competitive reform to the bankingsystem 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.
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 bankingsystem appeared to be.
If distorted competitive conditions, rather than bad corporate governance and no proper bankingsystem, are a main cause of Russia's plight, this should come as no surprise.