Peculiarities and trends of banking systems development

Comparison of trends and peculiarities of financial systems in different countries, especially, in emerging markets, should start with setting the global context. The study identifies several periods of development of world financial institutions in the twenty-first century - deregulation (global optimism regarding financial development), re-regulation (change in the paradigm following the Global Financial Crisis), and de-globalization (growing divergence between conditions for doing banking in different countries). Progress of banking systems in EMs was additionally shaped by local peculiarities at the turn of the century, most of which were related to their location (e.g. European banks penetrated in CEE countries, Russian financial system was dominating in CIS). The common features of emerging markets were low banking services' penetration and high promised returns. Through time, higher market saturation, technological advances, and trends in regulation and supervision increased degree of convergence in financial systems in developed and developing countries in what concerns main KPIs. That caused revision of focus towards greater attention to risk management and local needs. Global macroeconomic risks, related to countries with high debt, technological risks, and changing clients demands will become the drivers of banking systems development in emerging markets.