Who blew up the Russian financial sector: where to safely store savings

The number of banks experiencing financial problems is growing every day. They include such large credit institutions, such as “FC “Opening” and Binbank. Now these companies are in the process of recovery. As stated in the CBA, their rehabilitation will take eight months. Meanwhile, Citibank has closed in Russia, half of the units. According to the report of the credit institution, in two years the number of clients-physical persons has decreased by 40% to 600 thousand people. The Bank practically ceased to issue new loans. What is behind the problems of the largest banks in the country and how it threatens the entire sector, “MK” asked the experts.


photo: Gennady Cherkasov

According to poll VTSIOM, currently 44% of the population expect a banking crisis in the next two to three years. Another 29% of Russians predict default, loss of deposits and savings. 15% of Russians assess the situation in the banking system of the country is even more pessimistic — according to them, the crisis “will almost certainly happen or is already happening”.

Whether the excitement of ordinary Russians, “MK” asked the experts:

Ivan ANTROPOV, first Deputy Director of the Institute of contemporary Economics:

“Punitive strategy of the Central Bank on commercial banks, followed by massive withdrawals hit very hard by the banking sector. Many credit organizations have to review its policy of risk management, often inhibiting their development. The situation is complicated by the fact that people did not trust banks, not included in the TOP 10. In particular, for that was the recent twists and turns within the banking community, when leading credit institutions left the profile of the Association. As a result, complicated by the attraction of customers ‘ funds required for the stable operation of banks. Thus, the snowball of problems continues to grow, so a new wave of bankruptcies can not be excluded”.

Kirill YAKOVENKO, an analyst at ALOR BROKER:

“The Russian banking system is in balance, however, shaky. The fact that the market is dominated by state-owned banks. Sanira commercial banks, they get their customer base, market share, offices. As a result of their administrative resources was high as ever. On assets state-owned banks now hold approximately 62% of the market, and this share is constantly growing. And this, in turn, entails several consequences. On the one hand, the system becomes more manageable. On the other — in the case of external shock, the system, consisting of a few large banks, will collapse entirely. The banks have no one to help: the money for their rehabilitation is not enough in any contingency budget and any emission mechanism. Citizens in this situation is to split the deposits in banks in the amount not exceeding the sum insured (1.4 million virtually any). But the best way to translate savings in currency which is now at comfortable shopping levels.”

Mark GOYKHMAN, a leading analyst GK TeleTrade:

“The problems of the banks, have been uncovered in recent months – a systemic phenomenon. Echoes of the banking crisis and the effects of the economic crisis. In recent years, is not so much reliable and profitable sectors for banks: revenues decline in real business, the solvency of customers and borrowers. In addition, reduced interest rates in the markets, and with them the profitability of a Bank. Depreciate assets, whether real estate, other property and even currency amid strengthening of the ruble. The market is shrinking. “Inherited” from crisis there is a considerable “hole” in the assets of many banks. According to experts, they have half of the existing banks and up to 5 trillion. virtually any. It is not fortuitous that the specific manifestations of this situation, even the big players have “Ugra”, “Opening”, Binbank. Some “daughters” of foreign banks, such as Citibank, Nordeabank obviously preparing the ground for the collapse of Russia if necessary. In the whole banking system of the risk of catastrophe and collapse there. The main part of assets – up to 60% belongs to state-owned banks, which are supported by the government and the Central Bank. But this does not mean that there will be manifestations of problems at any banks. In such conditions, people, regular customers and depositors should be careful not to hold accounts at a Bank for more than 1.4 million insured ASV, not “buy” at attractive ads on high percentage.”

Eldiyar MURATOV, President of the Singapore Castle Family office:

“Optimization of Citibank takes place in parallel with negative trends in the banking sector. But to link these two processes, probably still not worth it. This Bank was originally an international institution with branches in different countries and mostly focused on clients with a status of above average. As the deterioration of the situation in the economy has shifted to the segment of premium and private banking with the winding down of volumes in the mass segment. The new strategy requires a different format and one way or another explains the reduced scale of the business.”

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