Russian banks were subject to some market discipline during the financial crisis, but not before or after, and even during the crisis, the level of market discipline was too low to effectively curb risk-taking.

In a new paper for the Bank of Finland's Institute for Economies in Transition (Bofit), Irina Andrievskaya and Maria Semenova investigate the discipline mechanisms of Russia's interbank market, testing the hypothesis that market discipline in Russia was strong enough to constrain