Cleansing in the Russian banking market began after the recent bankruptcy of Master-Bank and the revocation of its license.
Master-Bank's bankruptcy was completely unexpected, with deposits worth $1.5 billion. Master-Bank, however, had repeated problems with the law, and its abundance of ATMs, zero interest rates and large business were only an appearance, Pravda.ru reports.
The troublesome news began long before the Master-Bank debacle. Another credit institution, Chelyabinsk bank UralLiga, lost its license the same day, and a week earlier Interregional Samara Volga-Kama Bank for Reconstruction and development and the Moscow Stroyindbank were declared bankrupt.
Experts rushed to alleviate the fears of the citizens.
"Of course, Russia has developed a fairly small banking system with numerous players," Professor of the Department of Stock Market and Investment of HSE Alexander Abramov said, according to Pravda.ru. "The Master Bank crisis is generally an alarming signal in relation to the Russian banking system because now the issue of non-performing loans that banks issued to the public causes significant concerns. This is really quite an alarming phenomenon, it should not be disregarded. But I think the Central Bank now has the power to overcome the issues. There is no need to worry about the entire banking system based on the precedent of Master-Bank."
According to the deputy director of the Banks and Credit Policy Department at the Institute of Europe, the policy pursued by the Central Bank could make the Russian banking market much more focused and responsible with very few, but large, significant players with a stable financial component.
- MINISTRY OF FINANCE OF GEORGIA: The European Code of Customs Code will be launched in Georgia
- MINISTRY OF FINANCE OF UKRAINE: Ministry of Finance launches second module of "E-Data" project - open "Budget for citizens"
- EUROPEAN INVESTMENT BANK: Investment Plan for Europe: the EIB and Grifols sign a new loan agreement to advance research on rare and chronic diseases
- EURASIAN DEVELOPMENT BANK: The Eurasian Development Bank and Kazyna Capital Management signed an agreement on cooperation
- BANK ZENIT - RUSSIA: Banking Group ZENIT announced its financial results under IFRS for the six months of 2018
- BNP PARIBAS - UKRAINE: UKRSIBBANK Remotely Refines its Personal Data
- BANK OF GEORGIA: With the general partnership of the Bank of Georgia, the traditional horse racing "Baccharo Cup 2018" was held to popularize the resort Bakhmaro
- ASIAN DEVELOPMENT BANK: Philippine PPP Policy Gets a Boost from ADB's $300 Million Loan
- AG BANK: AGBank congratulates the people of Azerbaijan with the state attribute on the 26th anniversary of manat!
- ABN AMRO SERVICES COMPANY: New ABN AMRO campaign highlights sustainable business