Influence of social and economic development of the region on the functioning of the regional banking system

Abstract

The article is devoted to the analysis of the influence of the indicators of regional economic and social functioning on the results of the regional banking system’s activity. The authors chose the indicators of social and economic development of the Rostov region and commercial banks operating in its financial market as objects for the study. In the article the authors analyzed the methodologies that focus on assessing the impact of macroeconomic indicators on the banking system of the region. Besides, on the basis of econometric modeling quantitative and qualitative patterns of interrelations between the indicators of social and economic development of the regional economy and banking in the region are defined. As a result of the study, the authors concluded that the determining socio-economic factors that have a significant positive impact on the development of the banking system in the region are: the number of advanced technologies used; per capita monetary income; the transport infrastructure development level; the level of human capital; internal expenditures on research and development; gross regional product; value of fixed assets; fixed capital investment; retail trade turnover.