This article is a continuation of studies devoted to the interaction of the region and its banking system. The research object in this article is the banking system of the Rostov region, the Southern Federal District, and its impact on the acceleration of socioeconomic development of both the regions.The subject of the study is interaction of banks with the real sector of the economy and the population of the region. The authors analyzed the scientific sources exploring the interaction of the banking and real sectors of the economy and methodological approaches to the analysis of banking activities’s effects on the region and its socio-economic indicators.Based on econometric modeling, quantitative and qualitative regularities of the indicators are revealed. As a result, authors concluded that the growth in the total volume of profits received by existing credit institutions contributes to the growth of such important socio-economic indicators like Gross Regional Product, internal costs of research and development, labor productivity, fixed asset investments, per capita income, growth of deposits attracted by credit institutions, as well as the growth in the amount of debt on loans extended by credit institutions to legal entities and individuals.

G.A. Batischeva Et Al (2018). Regional Development and Banking Activities, European Research Studies Journal Volume XXI Special Issue 1, 455-465