Foreign banks in Russia
Main article: Foreign banks in Russia
Card payment systems
Deposits of natural persons
Bank secrecy in Russia
Digital transformation of the Russian banks
Information security in banks
Main article: Information security in banks
Date leaks from Banks of Russia
Main article: Date leaks from Banks of Russia
The share of loss-making Russian banks in April increased to 37%
The number of loss-making Russian banks according to the results of the first quarter 2020 noticeably grew - from 16% to 28% of a total quantity of credit institutions. In April the share of loss-making banks increased to 37%, formation of profit of credit institutions significantly slowed down. "The banking system in digits and diagrams" for the I quarter 2020 is said about it in the state-of-the-art review issued on June 16, 2020 by Banking association of Russia.
As analysts of Banking association of Russia note, according to the results of the first quarter the bank group had negative indicators of profitability of the capital and assets with the basic license (BBL), other groups of credit institutions showed positive results. Return on assets at BBL decreased from 0.6% for January 1, 2020 to-0.1% for April 1, 2020, profitability of the capital for the same period fell from 3.1% to-0.8%.
In the overview it is emphasized that in the first quarter 2020 the national objective of support of the population and business in the period of a pandemic of a koronavirusny infection was assigned to the banking sector. The stock adequacy of the capital and liquidity and also competent management decisions of banks allowed to avoid shocks in the banking market.
At the same time, on the capital and the loan portfolios of banks considerable additional loading laid down, against the background of preserving of inertia of crediting decrease in volumes of new loans, especially was outlined in a mortgage, the valyutization of deposits, deposits and account balances of citizens and the organizations amplified, the overflow of client means in large banks, mainly, in systemically significant accelerated.
The first signs of credit compression were in the second quarter shown — reduction of volume of the issued credits in April became record since spring of 2015, the general tendency to quality degradation of the loan portfolio of households and the organizations of the non-financial sector was outlined, reduction of account balances of the non-financial organizations was outlined, deposit rates of the population and legal entities decrease.
Total assets of the banking sector in the first quarter increased 2020 by 8.2% — to 104.5 trillion rubles for April 1, 2020, at the same time the main contribution to positive dynamics was made by the systemically significant credit institutions (SSCI) of which 70% of all assets of the sector are the share. The main part of the profit got in the first quarter 2020 in the amount of 611.7 billion rubles also fell on SZKO.
In April, 2020 the net profit of the banking sector was about 32 billion rubles that is much lower than results of three last months. By estimates of analysts, reduction of a financial result was substantially caused by negative revaluation on transactions with foreign currency on separate banks against the background of strengthening of ruble exchange rate.
Taking into account the predicted dynamics of inflation, at decrease in a key interest rate to 4-4.5% real deposit rates by the end of the year can go to a negative zone that can entail deformation of the developed system of funding. The special relevance in the foreseeable future is acquired by a question of sources of a doformirovaniye of reserves on possible losses on loans, analysts of Banking association of Russia concluded.
The Russian banks transfer employees to work with accommodation at offices
At the end of April, 2020 the Russian banks began to transfer employees to work with accommodation at offices. The first such opportunity is implemented by Sovcombank and Zenit. Banks promise for it the raised salaries and bonuses.
The first deputy chairman and the co-owner of Sovcombank Sergey Hotimsky told RBC that they transferred about 10 specialists to the round-the-clock mode at office to provide uninterrupted operation of transactions. All of them are responsible for daily calculations. The employees living in bank are completely isolated, Hotimsky says. They sleep, eat, wash at office too. People went to such conditions voluntarily, the raised salary is paid to them for it.
|It touches heart of bank - it is treasurer transactions, the most critical for uninterrupted operation which cannot be (redistributed) pereallotsirovana to different places — Hotimsky reported, saying about where functioning of employees 24/7 is ensured.|
According to the first deputy chairman of Zenit bank board Konstantin Rybakov, in the organization bought things, necessary for accommodation, and food, medical maintenance is provided, and instructing and consultations are held with employees. Workers who agreed to isolation at office made the test on COVID-19 coronavirus.
In some other large Russian banks are not ready yet to that employees lived at work. Said to the edition it in VTB, Raiffeisenbank, Rosbank, Promsvyazbank and Tinkoff. The most part of their employees is transferred to remote work, however some specialists nevertheless should come to offices.
In the middle of March, 2020 many credit institutions began to transfer employees to remote work. Also banks introduced restrictions for visit of offices for employees who returned from abroad recently.
Stagnation of business of banks
The main result of 2019 for the banking sector – stagnation of business became chronic. Growth rates of nominal assets (2.7%), the credits to the non-financial sector (1.2%) and deposits (7.3%) – the smallest for the last three years. Also the regulator could revoke 2.5-3 times more licenses.
At the end of 2019 the relation of assets to GDP will fall lower than 90% from the maximum 99.9% in 2015. Deceleration of growth rates of GDP reduces possibilities of corporate business of banks. The last three years the actual growth of the regulatory loading increasing imputed costs of cost of banking services had. As a result Russia moves away from the relation of bank assets, commonly accepted for the leading countries, to GDP about 110-130%. @banksta
Central Bank: losses from sanitation of banks make from 750 billion to 1.4 trillion rub
In Russia there were less than 500 operating banks
The number of banks from which revoked the license in 2018m considerably grew, however the cumulative amount of their assets decreased. Say data of the "Monitoring of an economic situation in Russia" released in February, 2019 by a RANEPA about it.
In Russia, as of the beginning of 2019, 484 credit institutions work, in their last year there were 542. Six years ago, in 2013, in the country there were 1094 banks. Reduction of number of banks happened because of the policy of the Central Bank of the Russian Federation: for the last 5 years the regulator revoked about 400 banking licenses.
In 2014m the policy of the Central Bank was imposed on the anti-Russian sanctions, as a result within every month in the country the licenses were on average revoked from 7 banks; the previous year in a month the licenses were revoked only from 4-5 banks. Most of all licenses were revoked in 2016 – 97. In 2017m this indicator was much less – the license was lost only by 51 banks. However in 2018 the Bank of Russia began to revoke the licenses more actively: in a year 60 banks lost them. The total assets of these banks were 562 billion rubles – 0.65% of the total assets of the banking sector.
Profit increase of banks to 1.3 trillion rub of 62% at Sberbank
The profit of the Russian banks at the end of 2018, according to preliminary estimates, reached 1.3 trillion rub in comparison with 0.8 trillion rub in 2017, said in the overview of the Central Bank of the Russian Federation "Liquidity of the banking sector and financial markets" (January, 2019). In December the profit of the Russian banking sector exceeded 150 billion rubles. In November the profit of the Russian banking sector was nearly 100 billion rubles.
|"The growing profit of banks provided building of their capital (as directly increasing the capital, and promoting increase in investment attractiveness of the banking sector) that, in turn, creates conditions for further building of bank assets and their diversification" — the Central Bank notes.|
Nearly 62% from it are the share profit of Sberbank. The largest Russian bank still only who published the reporting for December from which follows that for 2018 he earned 811 billion rubles. In 2017 Sberbank got 674 billion rubles profits when all banking sector — only 790 billion rubles. Then the share of Sberbank in the profit of the sector made 85%.
The profit of banks in 2017 was influenced by sanitation of such large banks as FC Otkritie, B&N Bank and Promsvyazbank. These credit institutions doformirovat reserves and showed losses. At the end of 2018 the comparable loss will show only Trust bank based on which the Fund of non-core and troubled assets is created.
The licenses are revoked from 57 banks
The card of subjects of Russia on number of banks
Reduction of cashing in and other doubtful transactions
In June, 2019 the Bank of Russia announced that the volume of cashing in of money in the banking sector in 2018 was 176 billion rubles, having cut almost by half in comparison with 2017. Volumes of funds withdrawal abroad were reduced by clients of credit institutions by 1.2 times (from 77 billion to 65 billion rubles), volumes of doubtful transit transactions — almost twice (from 2.5 trillion to 1.3 trillion rubles).
The Central Bank reports about progress, but to rejoice prematurely, noted the Telegram channel @banksta. They replaced a calculation procedure, clicked banks and a part of cashing in went to trade - the markets, bars and motor shows, an envelope through banks was replaced by buying up of currency within the country.
But matter not only in it, the shadow market collapsed together with the stagnating economy and the choking private business.
The profit of the banking sector - 790 billion rubles of 25% of banks are unprofitable
Other 75% of credit institutions got a comprehensive income in the amount of 1.56 trillion rubles. Less losses of unprofitable financial organizations, the profit of the banking sector fell short of 790 billion rubles a little.
The managing director for the bank ratings of RAEX Alexander Sarayev in the comment for Izvestia explained, most often losses are incurred by small commercial banks which do not sustain the competition to giants of the market which intercept at them the most solvent borrowers. Besides, borrowers from among the small and medium companies actively pass into state banks. In 2017 68% of the loans granted them fall on financial organizations of the first thirty that is a maximum in the contemporary history.
Lilia Belyaeva confirms to the deputy chief of management of control of the financial markets of Federal Antimonopoly Service, it became more difficult to small banks to compete with credit institutions with branched structure and the state participation. Analysts of RAEX specify, 76% of legal entities and 74% of citizens store savings in state-controlled banks that for 9% and 10% are more, than still a year ago. Business obtained in such banks 73% of the credits, and individuals – 72%.
The head of department of the NRA financial ratings Karina Artemyeva adds, transition of investors and borrowers to national banks was promoted by scandals over a number of large private banks. In 2017 sanitation with establishment of state control underwent Promsvyazbank, Opening and B&N Bank.
All banks separated into organizations with basic and universal licenses
In May, 2017 the idea which was actively moving ahead the Russian Central Bank on proportional regulation of the banking sector purchased specific outlines. The relevant law adopted by parliament and signed by the president spread out all banks to two shelves – on organizations with basic and universal licenses.
The main criterion of separation – the requirement for the minimum amount of the capital. For banks with the basic license it should make from 300 million rubles to 3 billion rubles; for banks with the universal license – not less than 1 billion rubles. Let's note that after overcoming a threshold the bank can submit the application for revision of the license to 1 billion rubles.
The list of admissible transactions depends on a license type from now on, and it concerns basic banks. So, they will not be able to open foreign bank accounts and also to open the child organizations or branches abroad. There is a number of restrictions on work with securities.
In exchange regulatory requirements to banks with the basic license will be simplified: they will still open annual both interim financial statements and audit reports, however will not report to the Central Bank of the Russian Federation on the accepted risks, procedures of their assessment, risk management and the capital. Standards of required reserves at them will also be softer.
The law becomes effective since June 1, 2017, and from this day all operating banks automatically obtain universal licenses. Requirements about the amount of the capital will be applied only to newly created credit institutions so far.
For already working banks the criterion for evaluation of own means will become relevant since January 1, 2018: less than 1 billion rubles are given to banks with the capital year to be capitalized or obtain the basic license instead of universal. As of May, 2017 can expect about 300 banks obtaining the universal license, about 240 more credit institutions conform to requirements of the basic license. In general by January 1, 2019 transformation of the Russian banking system should come to the end.
Change of the status should not influence work of banks in any way. Banks will continue to work with the universal license as worked still. Toughening of the rules regulating their activity is in the future possible, however the becoming effective law of similar regulations does not contain. Banks with the basic license also should observe the fundamental standards set to the Central Bank of the Russian Federation. But in relation to them the main risk – image: now they can be perceived by Russians as financial institutions of the second sort.
To overcome the possible prejudiced relation to basic banks, it is necessary to take a number of steps. First of all, it is necessary to make formal amendments to the legislation in which it will be told that deposit insurance at the rate to 1.4 million rubles extends both to basic, and to universal banks. It will allow banks to remain with the basic license competitive in the market of attraction of financial resources of the population.
Not the last role is played by the questions connected with optimization of the reporting. It gives to banks with the basic license additional opportunities for cost reduction that as a result will allow them to save the attractive level of rates. For example, prohibition on work with nonresidents does inexpedient obligatory preparation of the reporting under international standards, - Oleg Yakushev, the expert AO IK of Tserikh Capital Management says
Expense reduction will be promoted also by a possibility of transfer on outsourcing of functions of security of banking systems. Also issues of interaction of basic banks with auditing companies and rating agencies are subject to discussion.
In the conditions of reorganization of a banking system the role of information support increases. The Central Bank should inform through media all concerned parties of an obvious thought: separation of banks on basic and universal is not continuation of policy of cleaning of the banking sector. On the contrary, it is purposeful work on formation of a competitive, steady cluster of full-fledged credit institutions which will offer the population and subjects of small and medium business high-quality financial services.
At the same time there is a certain risk that ampler financial opportunities of universal banks will lead to an overflow of those clients whom first of all expect basic banks. Unfortunately, today the legislation does not provide any measures which could level this process. There are no doubts that the new law will allow to cut those banks which were created especially for an output of assets abroad and also will help small banks to keep afloat due to reduction of requirements of the Central Bank of the Russian Federation. Formation of new infrastructure of the banking sector will depend directly on what bylaws will supplement and concretize provisions of the becoming effective law.