As the central bank of Russia tightens capital requirements, the country's Top 50 banks look set to continue accumulating capital and assets at the expense of smaller players. Writer Philip Alexander
The Russian retail banking sector has survived the crisis largely intact, and the change of focus from growth to funding and risk management could have long-term benefits for its resilience. Writer Philip Alexander
Russian capital markets have taken longer than most to thaw in the wake of the credit crisis, but leading local investment banks are now getting the chance to put their new ownership structures to the test. Writer Philip Alexander
Dominant state-owned Sberbank has not so far matched its entrenched status with market-leading service quality. The bank's head of strategy, Denis Bugrov, explains how he aims to change that. Writer Philip Alexander
Of the Russian banks in this year's rankings, two stand out for the right reasons: Alfa Bank and Bank Vozrozhdenie. They enjoyed real profits growth in 2008 of 30.2% and 19.5%, respectively.
By the onset of the global credit squeeze in 2007, Russian companies had racked up at least $300bn in foreign debt and more than 100 were considering equity listings abroad. The world has since been transformed as companies battle for scarce capital and funding. This round table on financing for Russian companies, held in April, gave senior bankers the opportunity to discuss the challenges with investors, corporate advisers and company executives. It was sponsored by VTB Capital but independently edited by The Banker.
Two themes dominate the changes in this year's rankings compared with 2008. First, the heavy sell-off in the currencies of many central and eastern European countries, including Russia, Hungary and Ukraine, has reduced Tier 1 capital in dollar terms. Second, liquidity crises and the revelation of high non-performing loan (NPL) ratios on portfolios that had not previously been tested in an economic downturn has brought a number of banks close to collapse, knocking them out of the Top 1000 altogether.
It is unsurprising that two of the US's biggest former investment banks take the top two spots in this year's list of new entrants. Both Goldman Sachs, which enters the Top 1000 in 13th place, and Morgan Stanley, which enters at 17th place, were forced to take commercial banking licences at the end of 2008. How long the two iconic Wall Street brands will remain in the rankings is another matter. Many are speculating that the banks will seek to shed their commercial bank status as soon as the economy and financial markets pick up.
Vasily Vysokov, Bank Center-Invest
As Russia's less developed regional banks are hit hard by the liquidity crisis, the chairman of Bank Center-Invest outlines his response. Writer Philip Alexander
Igor Kim, owner of Ursa Bank
As Russia undergoes its own financial crisis, the country’s authorities appear to be encouraging consolidation to remove the weaker players. But buyers will be taking a close look at their assets. Writer Ben Aris.
Lowered oil prices and political fear have rocked the balance of Russia’s economy, but there is still some cause for optimism.
Patrick Mole, Société Générale
Russian financing is one of the many areas in which banks have been left nursing losses. So how were the banks lending and how have they withstood the recent equity market rout? Writer Natasha de Terán.
Anatoly Ballo, Vnesheconombank
New state funds and laws are allowing Russia’s ailing infrastructure to catch up with its fast-growing economy. The Banker hears from some of the key players in a $1000bn market. Writer Philip Alexander.
Alexei Kudrin
Russian federal government finances have never looked healthier, but rising inflation, growing regional divides and the fallout from the conflict in Georgia mean finance minister Alexei Kudrin still has his work cut out. Writer Philip Alexander.
UralSib is among the lucky few to benefit from the credit crunch. Virtually unreliant on international financing, the bank has stood strong and is now winning custom from rivals that are struggling. Its CEO Andrei Donskikh talks to Ben Aris.
Russia is beginning to tackle more fundamental problems with its economy. With advice from Germany’s KfW, it is boosting its banking system. Ben Aris reports from Moscow.
Andrey Stepanenko, head of retail banking at Raiffeisen Bank
Vladimir Dmitriev, chairman, Russian Development Bank and Roseximbank
