THE FINANCIAL LITERACY INFLUENCE ON THE BANKING SYSTEM: EMPIRICAL STUDY 

Magomedov Ragim Abdulganievich, manager, Sberbank of Russia (19 Vavilova street, Moscow, Russia),
E-mail: rmagomedov@nes.ru
Agamagomedova Amina Magomedovna, student, Lomonosov Moscow State University (1 Leninskiye gory, Moscow, Russia),
E-maul: amina_aga@mail.ru 

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Background. The purpose of this work is to develop models for assessing the impact of the level of financial literacy of the population on the performance of the banking system in the region.
Мethods. The methodology of the study includes a formallogical method, empirical estimation methods, economic modeling method and interview method. The instruments for measuring financial literacy level include components like the total number of banks, the average size of a bank and the number of branches in a region.
Results. The results of the researches come from proposed models for assessing the impact of financial literacy on the banking system performance in the particular region. The obtained results can be used in the construction and implementation process of the banking
sector development strategy in the regions of Russia.
Conclusions. The applied approach shows that an increase in financial literacy level arrives to the change in the banking system
by reducing the number of relatively small banks. 

financial literacy, financial education, banking system of Russian regions, sociological survey, banking services, practical financial literacy, theoretical financial literacy, number of banks in the region, average size of banks, banking sector, bank branches