Banks

The number of Russian banks in the financial market of Russia makes about 90 %, however the share of the foreign capital in the general banking capital of Russia exceeds 25 %.

The bank assets at the beginning of 2008 exceeded 20 trln. rbl. while the assets of insurance companies, share investment funds and non-state pension funds in the aggregate made a little more than 2 trln. rbl.

During the last years the bank sector of Russia has grown essentially: only for the past year the assets have increased by 44.1 %. However, the massive modernization of economy will demand 37 to 40 trln. rbl. of annual investments within 5 years, which assumes unprecedented measures on crediting of state economic programs. In this connection, there is a necessity to develop the domestic bank system even more actively by strengthening its long-term resource base.

More than 50 % of all commercial banks of the country are registered in Moscow. Their share exceeds 85 % of all bank system assets of Russia.

The bank community has made a decision to prepare the "Strategy for development of the bank system until 2020". This document will define the basic ways of development of the Russian bank system with the account of the basic world tendencies. One of the scenarios assumes that at the first stage about 5 trln. rbl. of state funds means will be used as a growth catalyst. Here is put the objective of mobilization of long resources by using the advantage of the state funds. At the second stage the source of long resources will be the market of capitals: mortgage securities, corporate bonds, securitization, IPO.

As researches show, 80.4 % of bank clients in Russia are generally satisfied by the level of services, by choosing a bank 80 % are guided by reliability and appeal of the financial conditions, 60 % — by convenience of location and high speed of operations. Quality of service is important for 21 %, a big spectrum of bank services — for 9 %.

The main competitive advantage of the Russian banks remains a developed branch network.

According to experts, in 20—30 years large national banks have a chance to become international financial groups.

Within the next years the competition in the market of bank services will be strengthened by the "daughters" of foreign banks that continue to actively "develop" the Russian financial market. Thus, the BNP Paribas financial group taking leading positions in Europe has increased the number of its Russian "daughters" to four. Swedbank plans to increase the share of Russia in its business to 5 % within the next years. Deutsche Bank (its history in Russia totals over 125 years) now heads the working group on development of the bank sector and financial markets of Russia in the Advisory Council for Foreign Investments under the Government of the Russian Federation. It actively participates in the development of the legislation on derivative business, infrastructural bonds and other laws necessary for bank business.