Add to favorite
Subscribe to our Newsletters Subscribe to our Newsletters Get Daily Updates RSS
russian visa

Banks' Bailout Blueprints To Battle Big Trouble
January 14, 2013 13:37

Photo Credit:

 The largest banks in Russia would have to put together bailout plans for different crisis scenarios, according to Vedomosti daily.

Count on no-one but yourself

Mikhail Sukhov, deputy chairman of the Central Bank, told Vedomosti that Russia’s Top 30 banks have been advised to draft up bailout blueprints and forward it to the financial regulator. It’s a recommendation so far, but it may become obligatory after the relevant amendments are passed, possibly in 2013.

The new demand is in line with the Basel III requirements that will be introduced in Russia starting from October 2013.

The focus is on the capacity of individual banks to resist emergency situations on their own, be it a downfall on the stock exchange, slowdown of GDP growth or rapid outflow of customers.

This requirement will be compulsory only for key banks, roughly in the Top 30.

Banks agree

Gazprombank’s first vice-president, Ekaterina Trofimova, praised the effort saying it is part of the world-wide trend and it’s key that banks adopt and include these anti-crisis plans in their daily operations.

The Central Bank expects the first reports to be sent in within several months.

According to S&P analyst Sergey Voronenko, the 2008 recession provided the best stress-test conditions possible and the banks should devise their strategies to battle financial shocks along the lines of what they went through during that period.

The Russian banking sector stayed afloat in 2008-2009 largely due to injections from the state, he said. According to the World Bank, the Central Bank poured some 1.4 trillion roubles as part of the rescue effort.

2013 forecast

Poor capital quality is still the main issue for Russia’s banking sector, according to Moody’s, which set the outlook for 2013 as negative.

Its analysts fear a sudden repeat of the 2008 crisis in case of a drop in oil prices, which would cripple private companies, de-value the national currency and prompt a massive capital flight.

Author: Mikhail Vesely

Tags: Russian banks Russian banking sector Vedomosti Central Bank  

Next Previous

You might also find interesting:

Russian Law: Parliament in Action Roman Abramovich's "Eclipse" has enriched Germany for 400 million euros Global Oil Demand Reduces NHL Star Tarasenko Signs Historic Contract (VIDEO) Dramatic Bends in Viktor An's Life - True Story of Short Track Genius

Comment on our site

RSS   twitter   facebook   submit

Bookmark and Share

search on the map
Musicals in Moscow  Victor Titov  the Angara River  Russian Songwriters  Moscow Zoo  Exhibitions in Moscow  Ufa  Russian Arts and Crafts  Penza  Mercedes-Benz Fashion Week Russia  Mummy  extreme tourism in Russia  Russian winter  Barnaul  Summer Ballet Seasons   Vladivostok Monuments  Femco  Festivals in Moscow  Moscow  Festival "Now & After"  Dyagilev Festival  Businovskaya Interchange  odd news  St. Petersburg  IT  Nicholai Roerich  Sverdlovsk region  La Pushkin Theatre  Irkutsk Region  society  Russian medicine  Russian business  Russian regions  Russian Cinema  Bashkiria  bus tickets Russia FIFA  Sochi Winter Olympics  Sarai-Batu  travel to Russia  Gazprom  Cosmoscow Art Festival  Russian tourism  Modern Art  Antarctic Station  Gagarin  Hermitage Museum  LGBT in Russia  Russian trade  Rina Zelyonaya  Ivan Sechenov 

Travel Blogs
Top Traveling Sites