Tag: Banks

The long decline in Russia’s international reserves has stopped

Economy, Business, Investment, Trade, Oil, Gas, Energy
Diverse Paper Currency, Coins, Line Graph

(Business New Europe – bne.eu – Heli Simola of Bank of Finland – June 18, 2015) [Charts here bne.eu/content/story/comment-long-decline-russias-international-reserves-has-stopped] Russia’s international reserves have declined substantially, by around $150bn, since the start of 2014. However, during the second quarter of this year the level of reserves has been relatively stable, fluctuating at around $350bn-360bn. The recent stabilization has been supported by […]

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War-Weary Ukraine Shutters Cash-Starved Banks as Trust Falls

Economy, Business, Investment, Trade, Ukraine, Russo-Ukrainian War
Maidan Square in Kiev, Ukraine

(Bloomberg – bloomberg.com – Volodymyr Verbyany, Andras Gergely – June 12, 2015) When Vasyl Klos plunked $9,000 into a bank branch in his hometown of Lviv, Ukraine, in 2013, he assumed it was safe because it was German owned. He was wrong. Bank Forum JSC had already been sold by Commerzbank AG to Ukrainian businessman Vadim Novinsky, a fact Klos […]

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Russia No Longer a Good Option for Foreign Banks

Economy, Business, Investment, Trade
Diverse Paper Currency, Coins, Line Graph

(Moscow Times – themoscowtimes.com – June 3, 2015) The economic fallout of the Ukraine crisis has transformed perceptions of Russia among foreign banks and will likely see lenders curtail the operations of their Russian subsidiaries, ratings agency Standard & Poor’s said Tuesday. Foreign banks piled into Russia in the early 2000s in the hope that near 10 percent annual economic […]

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Russian Bank Lending Drops 60 Percent as Crisis Paralyses System

Economy, Business, Investment, Trade, Sanctions
Diverse Paper Currency, Coins, Line Graph

(Moscow Times – themoscowtimes.com – May 6, 2015) The number of loans issued in Russia in the first quarter of this year fell by 58 percent compared to the same period in 2014, as the devaluation of the ruble, Western sanctions and sky-high interest rates hit the banking system, a report showed Tuesday. The tide is now slowly beginning to turn […]

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NEWSLINK Reuters: Russia cuts key interest rate, hopes worst of crisis over

Economy, Business, Investment, Trade, Newslinks
File Photo of Elvira Nabiullina at OECD Event, at Podium and On Large Video Screen

Russia’s central bank cut its main lending rate by 1-1/2 percentage points on Thursday, its third rate cut this year, a sign that it believes the worst of an economic crisis is over. The cut to 12.5 percent follows the rouble’s recovery in recent weeks after a dramatic decline last year as global oil prices fell and Western economic sanctions […]

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No artificial liquidity crunch – Nabiullina

Economy, Business, Investment, Trade
File Photo of Elvira Nabiullina at OECD Event, at Podium and On Large Video Screen

MOSCOW. April 7 (Interfax) – There’s no artificial deliberate liquidity crunch in Russia, Elvira Nabiullina, head of the Central Bank, said. “There’s no artificial liquidity crunch,” she said. She said the ruble was strengthening due to the stabilization of oil prices, and end to peak foreign debt repayments and a high key rate. “Some people have described the ruble’s strengthening […]

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Sexism in Russia: On the retreat but still a long way to go

Economy, Business, Investment, Trade, Politics, Government, Protests, Elections
Map of Russia and Russian Flag adapted from images at state.gov

(Russia Beyond the Headlines – rbth.ru – Marina Obrazkova, RBTH – April 4, 2015) There is a prevalent idea in Russian society that men and women should behave according to some unwritten standards. However, it is the country’s women that are affected much more by discrimination. What kinds of problems does this create in daily life and how long is […]

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Fight between Ukraine’s government and oligarchs embroils largest lender Privatbank

Ukraine, Russo-Ukrainian War
Maidan Square in Kiev, Ukraine

(Business New Europe – bne.eu – Graham Stack in Kyiv – April 1, 2015) The war between Ukraine’s government and the oligarchs has reached into the fragile banking system, as the central bank felt moved to reassure depositors in Privatbank, the country’s largest, after allies of President Petro Poroshenko made murder allegations regarding its owner, Ihor Kolomoisky. The National Bank […]

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The Russian banking system? Yeah, that’s going to be a problem

Economy, Business, Investment, Trade
Cash, Calculator, Pen

(Business New Europe – bne.eu – Mark Adomanis in Philadelphia – March 16, 2015) The most basic part of any bank’s business model is the extension of loans to consumers and corporations. Clients need money, to expand their business, buy a home, or, in a less sunny scenario, to re-finance existing borrowing, and the bank gives it to them while […]

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Russia Beyond the Headlines: Is a banking crisis looming in Russia?

Economy, Business, Investment, Trade
Russian Central Bank file photo

(Russia Beyond the Headlines – rbth.ru – Alexei Lossan, RBTH – January 20, 2015) The Russian government will supply banks with nearly $15 billion to help stave off a possible financial crisis. Only banks that are willing to increase credit in the production sector of the economy will be eligible to receive the money. In such a way the government […]

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Putin offers Russian business ‘full’ offshore capital amnesty

Economy, Business, Investment, Trade, Sanctions
Hands Opening Envelope Containing Cash

(Business New Europe – bne.eu – bne IntelliNews – December 4, 2014) Russian President Vladimir Putin has announced a complete capital amnesty, allowing businesses to repatriate offshore funds without fear of the consequences. “We need to finally turn the ‘offshore page’ in the history of our economy and country,” Putin told the federal assembly in his annual address. “If someone […]

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Sanctions Affect Half Of Russia’s Banking Sector, Report Says

Economy, Business, Investment, Trade, Sanctions
Cash, Calculator, Pen

(Moscow Times – themoscowtimes.com – November 19, 2014) Russian banks are the most vulnerable among the world’s large emerging market economies due to Western sanctions and near zero levels of economic growth, a Standard & Poor’s report released Wednesday said. Sanctions directly affect more than 50 percent of Russia’s banking sector, which is dominated by state financial institutions, the report […]

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Safe-Deposit Box Craze Lays Bare Ukraine Woes After Vote

Economy, Business, Investment, Trade, Ukraine, Russo-Ukrainian War
File Photo of Cash, Coins, Line Graph

(Bloomberg – bloomberg.com – Daryna Krasnolutska – October 29, 2014) Wary of banks and alarmed by armed conflict around her parents’ town, Daria Demianenko joined Ukraine’s rush to an old-fashioned way of squirreling away cash. More commonly known as a home for fancy jewels and ill-gotten gains, safe-deposit boxes are swallowing a growing chunk of regular savings in Ukraine. For […]

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Russians Lose Faith in Banks as Ruble Falls and Sanctions Bite

Economy, Business, Investment, Trade
VTB Bank Facade file photo

(Moscow Times – themoscowtimes.com – Delphine d’Amora – October 16, 2014) Consumer confidence in Russia’s financial system is falling, with half of Russians saying they don’t trust banks and are using such services less, in a troubling signal for a system under pressure from Western sanctions and more sensitive than ever to outflows of depositors, a recent study showed. In […]

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How Bulgaria’s Bank Run Affects Ukraine’s European Dream

Bulgaria, Economy, Business, Investment, Trade, Europe, EU
EU Map

(Bloomberg – bloomberg.com – Ian Wishart, Elizabeth Konstantinova – July 3, 2014) Joining the European Union was meant to give Bulgaria a fresh start. Try telling that to Anna Dimitrova. “Bulgaria didn’t gain from the EU as much as it could have, because it’s mismanaged by corrupt politicians,” said Dimitrova, a law student, in central Sofia. “Our politicians are not […]

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Why Putin Is in Trouble With 86% Approval

Economy, Business, Investment, Trade, Politics, Government, Protests, Elections
Vladimir Putin file photo

(Bloomberg – bloomberg.com –  Evgenia Pismennaya, Henry Meyer, Brad Cook – June 27, 2014) One month he wins the Olympics and kudos from world leaders. The next he grabs Crimea and gets kicked out of their most exclusive club. Now he’s facing a recession with few tools to fight it save the public’s love. Even Vladimir Putin, in his 15th […]

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Russians Paying Up to Turn Rubles Into Homes: Mortgages

Economy, Business, Investment, Trade
File Photo of Cash, Coins, Line Graph

(Bloomberg – bloomberg.com – Lyubov Pronina – June 4, 2014) Denis Ichetkin’s decision to get a mortgage for a one-bedroom apartment on the outskirts of Moscow in late January couldn’t have been better timed, he said. The 30-year-old journalist and his wife Veronika secured a 15-year loan from VTB Group with a 12 percent interest rate before Russia’s March incursion […]

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Interfax: Visa, MasterCard to continue operating in Russia – Siluanov

Politics, Government, Protests, Elections
File Photo of Stack of Credit Cards, adapted from image at fdic.gov

(Interfax – May 20, 2014) The payment systems Visa and MasterCard will continue operating in Russia, Finance Minister Anton Siluanov told Interfax on Tuesday. “We can’t abandon these systems since over 90 percent of those who use payment systems work with them,” he said. He did not say how the problem would be resolved with security deposits that Visa and […]

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Medvedev Orders Bank Chiefs to Reveal Personal Assets in Corruption Battle

Corruption, Law, Police, Courts, Crime, Economy, Business, Investment, Trade, Politics, Government, Protests, Elections
VTB Bank Facade file photo

(Moscow Times – themoscowtimes.com – May 13, 2014) Prime Minister Dmitry Medvedev has ordered the heads of Russia’s two largest banks – state-owned Sberbank and VTB – to report their income, expenses and assets as part of an annual anti-corruption checkup. Sberbank’s German Gref, a former economic development minister, and VTB’s Andrei Kostin were among those officials required to report […]

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Visa and MasterCard Cling to Russia Despite $3.8 Billion Blow

Economy, Business, Investment, Trade, United States, U.S.-Russian Relations
File Photo of Cash, Coins, Line Graph

(Moscow Times – themoscowtimes.com – Diana Kulchitskaya – May 7, 2014) Visa and MasterCard will hold fast to Russia despite a new law that forces them to pay over $3.8 billion as a security deposit to the Central Bank. Both international firms consider the measures taken as too severe and think that they will not only make work in Russia […]

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RIA Novosti: Geopolitics Poses Risks to Russian Financial Stability – Bank of Russia

Economy, Business, Investment, Trade, Ukraine, Russo-Ukrainian War
Elvira Nabiullina file photo

MOSCOW, April 2 (RIA Novosti) – A review of ratings of Russian borrowers and the threat of their exclusion from international capital markets may affect Russia’s financial stability, the head of the Central Bank of Russia said Wednesday. “The geopolitical risks are large, especially if our banks and companies run into limitations on refinancing in Western markets, and a review […]

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Kudrin on sanctions: Western banks already closing credit lines to Russian corporate sector

Economy, Business, Investment, Trade, Ukraine, Russo-Ukrainian War
Alexei Kudrin file photo

ST. PETERSBURG. March 13 (Interfax) – Former Russian finance minister Alexei Kudrin is apprehensive about possible Western sanctions against Russia and said limitations in the banking sector have already begun. “I can say quite definitely: credit line limits for Russia are being closed,” said Kudrin, who is currently a member of the Presidential Economic Council. “Our corporate sector currently has […]

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Banks Scramble for Clients as Mortgage Lending Takes Off

Economy, Business, Investment, Trade
Sberbank File Photo

(Moscow Times – themoscowtimes.com – Delphine d’Amora – February 18, 2014) Mortgage lending is soaring as banks lower their rates, carrying with it both the benefits and potential drawbacks of a mortgage-greedy banking system. Until recently, Russian banks and consumers alike were skeptical of mortgages, and the rapidly escalating price of real estate did not help matters. Now, stable housing […]

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Russia’s bank consolidation is going surprisingly smoothly

Economy, Business, Investment, Trade
Russian Central Bank file photo

(Business New Europe – bne.eu – Ben Aris in Moscow – February 17, 2014) Russia’s central bank moved in on its latest two victims on February 11, pulling the banking licenses from Moscow-based European Trust Bank (Eurotrust) and Link-Bank. Eurotrust was already a zombie. The bank stopped taking in new retail customers last November due to the tough economic conditions, […]

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RIA Novosti: Russia Has Too Many Banks – Putin

Economy, Business, Investment, Trade, Politics, Government, Protests, Elections
VTB Bank Facade file photo

MOSCOW, January 22 (RIA Novosti) ­ President Vladimir Putin said Wednesday that there are too many banks in Russia, Prime business news agency reported. “We have just under a thousand banks. That is, of course, a large quantity of financial institutions for our economy,” Putin said during a meeting with a group of Moscow students. Dozens of Russian banks have […]

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State Boosts Grip on Economy With Bank Crackdown

Economy, Business, Investment, Trade
File Photo of Cash, Coins, Line Graph

(Moscow Times – themoscowtimes.com – Alexander Panin – December 26, 2013) For some bank depositors, the second half of 2013 has been a year to increase their intimacy with the state, whether they wanted to or not. Anyone with funds in the more than 30 small and medium-sized commercial banks that lost their licenses this year would have gone to […]

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Interfax: Fears for Russian banking sector stability “groundless” – Central Bank head

Economy, Business, Investment, Trade
Elvira Nabiullina file photo

(Interfax – Moscow, December 18, 2013) Russia’s banking sector has improved its financial indicators in 2013 and concerns over its stability are groundless, Elvira Nabiullina, chairwoman of the Central Bank of Russia, said on Wednesday [18 December] at a conference organized by the Association of Russian Banks. “Concerns over the stability of Russia’s banking sector are absolutely groundless,” she said. […]

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Tough regulation challenges Russian banking business

Economy, Business, Investment, Trade
Cash, Calculator, Pen

(Russia Beyond the Headlines – rbth.ru – Alexandra Kulikova, special to RBTH  – December 12, 2013) In early December Adam Smith Conferences held the 20th anniversary Russian Banking Forum in London aimed at looking at what the future holds for Russia’s banks. The timing of the Russian Banking Forum this year was perfect to have a feel of the expert […]

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Investors fear recent bank closers

Economy, Business, Investment, Trade
File Photo of Cash, Coins, Line Graph

(Russia Beyond the Headlines – rbth.ru – Marina Maksimova, special to RBTH – Deccember 5, 2013) The Russian Central Bank has revoked the license of several large banks as part of what it says is a fight against corruption and a shadow economy. Banking industry experts are worried that the Central Bank’s efforts to clean up Russia’s shadow economy could […]

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Russian Recession Risk Worsened as Banks Skimp on Loans

Economy, Business, Investment, Trade
File Photo of Cash, Coins, Line Graph

(Bloomberg – bloomberg.com – Olga Tanas & Agnes Lovasz – August 19, 2013) Elena Dibova was ready to pledge her 15 million-ruble ($456,000) apartment to get financing for her metal-safe business. As her bank dragged its feet, she hit the roadblock companies across Russia face as the economy sinks. Corporate-lending growth has plunged as the weaker economy prompts banks to […]

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Russia Lost $25 Bln in 3 Years in Transfer Scams – Banker

Corruption, Law, Police, Courts, Crime, Economy, Business, Investment, Trade
File Photo of Man Placing Stack of Large Bills into Inside Pocket of Suitcoat

(RIA Novosti – MOSCOW, June 19, 2013) Shell companies have illegally funneled 760 billion rubles ($25 billion) from Russia in the past three years, outgoing Central Bank chief Sergei Ignatyev said on Wednesday, Vedomosti business paper reported. Ignatyev who is leaving his post next week after serving three consecutive terms, made the statement in a report to the Russian parliament […]

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Russia Agreed to Restructure Bailout Loan to Cyprus, Putin Says

Cyprus, Economy, Business, Investment, Trade
Cyprus Map

(Bloomberg – bloomberg.com – Olga Tanas – April 8, 2013) Russia agreed to restructure a 2.5 billion-euro ($3.3 billion) loan granted to Cyprus in 2011, bowing to a request by the European Commission, President Vladimir Putin said. “We are making our own contribution” to help the island, Putin told reporters today at a joint briefing in Hanover with German Chancellor […]

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Russia Won’t Bail Out Cyprus Savers Facing Deposit Losses

Cyprus, Economy, Business, Investment, Trade, Europe, EU
Cyprus Map

(Bloomberg – bloomberg.com – Scott Rose – April 1, 2013) Russia won’t bail out people or companies that stand to lose money held at Cyprus’s two largest banks, First Deputy Prime Minister Igor Shuvalov said. “If someone gets stuck and loses money in those two biggest banks, that’s really too bad,” Shuvalov said in an interview late yesterday on Russian […]

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The Cyprus Financial Meltdown Disrupts Close Relations with Berlin and Europe

Cyprus, Economy, Business, Investment, Trade, Europe, EU
Cyprus Map

(Eurasia Daily Monitor: Volume 10, Issue 58 – Jamestown Foundation – jamestown.org – Pavel Felgenhauer – March 28, 2013) The European Union is Russia’s number one trading partner, and for many years Moscow was seeking to establish a privileged political and economic relationship with select Western European “friends” like France and Germany. Moscow’s most important foreign policy objective since the […]

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Russia Readying Help for Companies With Funds Ensnared in Cyprus

Cyprus, Economy, Business, Investment, Trade
Cyprus Map

(Bloomberg – bloomberg.com – Ilya Arkhipov & Vladimir Kuznetsov – March 27, 2013) Russia is among the biggest losers of the crisis in Cyprus and may use its development bank to aid companies with funds trapped behind capital controls in place on the cash-strapped island, the head of the state lender said. “We are prepared to consider proposals and ideas, […]

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Kremlin Backs Cyprus Bailout Deal

Cyprus, Economy, Business, Investment, Trade
Cyprus Map

(Moscow Times – themoscowtimes.com – Howard Amos – March 26, 2013) A deal between Cyprus and European lenders was backed by the Kremlin on Monday even as top Russian officials unleashed a storm of angry rhetoric about a compulsory levy on local bank accounts included in the rescue package. President Vladimir Putin “decided to support” the agreement between Cyprus and […]

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Cyprus Deposit Haircut is ‘Legalized Theft’ Says Russian Businessman

Cyprus, Economy, Business, Investment, Trade
Cyprus Map

NICOSIA, March 25 (RIA Novosti) ­ The Cypriot authorities’ plans to force losses on local account holders to unlock a much-needed bailout from international lenders breach international accords and will be challenged in court, the head of the Association of Russian Businessmen in Cyprus said on Monday. The finance ministers of the 17-nation euro area agreed early on Monday on […]

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Interview: Russian Economist Discusses Moscow’s Stance On Cyprus Crisis

Cyprus, Economy, Business, Investment, Trade, Europe, EU
Cyprus Map

(RFE/RL – rferl.org – March 20, 2013) As the financial crisis deepens in Cyprus, attention is focusing on Russia’s role in preventing the Mediterranean island nation from going bankrupt and exiting the eurozone. RFE/RL’s Claire Bigg spoke to Natalya Orlova, chief economist at Alfa Bank. RFE/RL: Michael Sarris, the Cypriot finance minister, was in Moscow this week to discuss the […]

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Cyprus Fails to Obtain Kremlin Aid

Cyprus, Economy, Business, Investment, Trade
Cyprus Map

(Moscow Times – themoscowtimes.com – Howard Amos and Irina Filatova – March 21, 2013) A desperate effort by Cypriot authorities to win financial aid from the Kremlin failed to yield any results Wednesday, as a deal eluded Cyprus’ finance minister, Michalis Sarris, during a visit to Moscow. Russian companies are being hit by a freeze on Cypriot bank accounts as […]

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