How Russia's central bank is clamping down on the financial sector

The head of the Russian central bank has been clamping down on the country's sprawling banking industry – and more regulatory action is likely in future. OpRisk looks at the new face of financial regulation in Russia

A stroll around the streets of Moscow is enough to demonstrate that the Russian banking industry is highly fragmented – spotting the same bank logo twice can often seem a challenge. This crowded market has long been in need of some kind of reform, with undercapitalised balance sheets and lax operational practices among the problems faced by the sector. But until last year, there seemed to be little appetite for change from the Russian authorities.

Enter Elvira Nabiullina. The former minister of