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Financial Services Report Russia 1st Quarter Product Image

Financial Services Report Russia 1st Quarter

  • ID: 2139179
  • February 2014
  • Region: Russia
  • 22 Pages
  • The Economist Intelligence Unit

Russia has a relatively large, albeit state-dominated, banking system, which is now gradually developing capital adequacy standards in order to bring it into line with the Basel III regulatory standards adhered to by European banks. However, the country lacks significant institutional investors because of the limited development of insurance and asset management activities. This hampers the development of the securities market.

In the event of another global downturn and a credit squeeze in the global markets, the Russian Central Bank (RCB) seems ready to provide liquidity support for the country's banks. The country holds ample foreign reserves, worth US$470bn at end-2013.

Reforms in regulation and supervision are needed to ensure that Russia generates a strong banking system, particularly as low levels of capitalisation and weak governance are a drag on its growth. Recent stress tests conducted by the RCB suggest that the banks should have enough capital and profit to withstand significant macroeconomic shocks and credit losses, irrespective of excessive currency volatility (the rouble has been on a downward trend since December 2013). The tests suggest that under certain extreme economic scenarios, such as a significant contraction in economic growth, some of the smaller banks would require recapitalisation from the government or other forms of state support.

Industry List: Asset management, Financial Services, Banking, Financial Services, Financial markets and instruments, Financial Services, Financial regulation, Financial Services, Financial Services, Financial Services, Insurance
Industry Codes (NAIC): 52
Industry Codes (SIC): 60

Financial Services Report Russia 1st Quarter

Financial services report
Overview

Banks

Insurers

Asset managers

Financial markets and instruments

Financial regulation
Overview
Regulatory watchlist

Monetary and currency policy: Monetary policy

Monetary and currency policy: Exchange rates

Russia at a glance

Fundamental indicators

Key contacts

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