Ethical Standards in Economic Relations: Relevant Aspects of Development of Russian Regions

Abstract

The availability of financial infrastructure is an important component for development of Russia and its regions since its functional characteristics ensure economic growth. However, according to studies of Russian economists, not all regions of the country have established regional banks. In this regard, the issue of regional banking sector stability and the search for effective tools ensuring that stability remain relevant. It is important to increase effectiveness and efficiency of investments into economy of regions of the Russian Federation at the expense of preservation and development of regional banks, forming a relationship with the real sector of economy of Russian regions. In this regard we need to consider aspects of use of ethical banking instruments that are positive for economic development of Russian regions. An investment basis of Islamic banking – the main tools and groups of methods of financing the real sector of economy – are presented. "Negative" aspects of the functioning mechanism of the financial and economic sphere are shown. The limitations of using the Islamic economic model as an institution of ethical behavior in Russia and its regions are revealed. A comparative analysis of traditional (Western) and Islamic banks is carried out. Examples allowing one to judge about the experience of ethical banking application in Russian regions are considered. The main vectors of use of this institution to improve sustainability of Russian regions economic development are identified. Keywords— ethics; regions of Russia; Islamic economic model; economic relations; ethical banking; savings account