Abstract: the article examines the modern banking sector of the Russian Federation in the context of financial sanctions, threats to its development and potential ways to solve problems. The significant role of sanctions restrictions, which do not allow Russian banks to appeal to cheap foreign funding, is highlighted. Special emphasis is placed on the role of the Central Bank as a mega-regulator in the banking market and its role in stimulating or slowing down the development of the banking industry. The potential transformation of the banking business, which is taking place in the context of reducing the marginality of classic banking products against the background of increasing the importance of risk-free income, was also considered. The article highlights the impact of Fin Tech companies as competitors of traditional banks on limiting the development of the banking sector,as transaction operations are more effectively performed by Fin Tech due to their size and management flexibility. A separate important aspect of the slowdown in the development of the Russian banking sector was the lack of involvement of clients in active capital participation. The question of low financial literacy of the population as a factor limiting the development of financial engineering in Russia is raised. The article discusses banks’ obsession with the financial sector of the economy and the reasons for low confidence in borrowers from the real sector of the Russian Federation. Various legal measures that can contribute to the growth of confidence in borrowers from small and medium-sized businesses are presented. The article raises the question of the possibility of transforming a bank into a financial consultant. In addition, they provided their own experience in the banking sector, observations and opinions of more experienced colleagues on the prospects for the development of the banking sector.
Keywords: banking sector, sanction restrictions, crisis management tools, CBR, Fin Tech