Russian banks are lessening foreign dependence - Like This Article


September 27 , 2017 - Fort Russ News - 
KtovKurse - translated by Inessa Sinchougova




The Russian banking sector significantly reduced the share of foreign funding for the year - the volume of funds raised from non-residents fell by a third, according to the calculations of the Expert RA agency.

According to the agency, as of September 1, 2017, the volume of funds attracted from non-residents fell by one third, and in two years funding from non-residents decreased even more - from 2.2 trillion to 1.3 trillion rubles, or almost 41%.

Experts believe that this is primarily due to anti-Russian sanctions, which made it difficult and expensive for Russian banks to attract foreign capital.

Vice-President of the Asia-Pacific Bank for work in financial markets, Dmitry Zubkov, believes that the restrictions imposed four years ago scared off most of the foreign creditors.

Many financial organizations that previously had to pay fines to the US authorities for cooperation with Cuba, Iran and other countries that have fallen into the restrictive lists of the United States, are now cautious and reduce business with the Russian side.

Recall that at the end of the summer, the US, as part of a new package of sanctions against Russia, reduced the maximum possible period for raising funds in the United States from 30 to 14 days. Although under current conditions, this could not hit the market - banks can receive securities from the Central Bank through loans secured by securities.

The representative of Rosbank explained that the situation with the currency on the banking market has significantly improved, as the demand for foreign currency loans due to the dedollarization of the economy and a significant drop in the national currency declined on the part of borrowers and, as a result, the banks themselves do not need foreign exchange funding.

Analysts at the same time note that, the decrease in dependence on foreign funds by a third is quite significant, since the currency could help accelerate the growth rate of the Russian economy.

On the other hand, it will give an opportunity to address to the resources which for a long time were ignored and did not develop at all.

Earlier, Russian Prime Minister Dmitry Medvedev said that Russian banks will be obliged to report on the accounts of foreign clients, and from 2021 it is planned to impose a fine for financial organizations in the amount of 500 thousand rubles for evading such a measure.


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Russian banks are lessening foreign dependence - Like This Article

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