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Russians See No Cause for Alarm in Crackdown on Shadow Banking

The problems exposed in Russia's banking system by last week's collapse of mid-sized lender Master Bank are deep-rooted, but in contrast with banking failures of the past, there was no evidence this time of other banks' customers taking fright. That seems surprising to analysts, as the collapse has highlighted the difficulty of enforcing regulations against banks with strong political connections, and the widespread use of illegal payments to service Russia's large...

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