Banks in Russia

Deposits of individuals

Main item: Deposits of individuals in Russia

Bank secrecy in Russia

Main article: Bank secrecy in Russia

Crediting

Main article: Lending in Russia

Card Payment Systems

Main article: Card payment systems

Bank guarantees

Main article: Bank guarantees in the framework of public procurement

Investments in Russian banks

Main article: Investments in Russian banks

Bank profits

Main article: Profit of Russian banks

Digital transformation of Russian banks

• Digital transformation of Russian banks
• Import substitution of information technologies in banks
• Banking informatization trends

Information protection

Information security in banks

Main article: Information security in banks

Data leaks from Russian banks

Main article: Data leaks from Russian banks

Foreign banks in Russia

Main article: Foreign banks in Russia

Asset Management in Russia

Main article: Asset management in Russia

2024: The share of Wildberries, Ozon and Yandex banks in the electronic payment market increased to 40%

Financial institutions owned by major technology companies Wildberries, Ozon and Yandex have significantly increased their share in the electronic payment market in Russia. According to data announced in mid-October 2024, their combined share reached 40%, which is 20 times higher than three years ago.

According to Kommersant, Olga Skorobogatova, First Deputy Chairman of the Central Bank of Russia, said that such a change significantly affects the country's payment landscape. In 2021, the share of these organizations was only 2% of the electronic payment market.

The share of payments to Wildberries, Ozon and Yandex reached 40%

Yegor Lopatin, director of the rating group of financial institutions of the NKR agency, notes that the increase in the share of payments through Marketplaces banks correlates with an increase in the volume of e-commerce and the popularity of online platforms. He predicts a further increase in this indicator in the absence of changes in the regulation of the industry.

Traditional big banks are expressing concern about increased competition from marketplaces in the financial sector. The head of Alfa-Bank, Vladimir Verkhoshinsky, previously called such competition unfair, pointing out the differences in the regulation of traditional and digital financial organizations.

Financial market expert Andrei Barkhota believes that the current situation may be beneficial for consumers of financial services. In his opinion, in order to compete with specialized banks, large players will have to improve their business processes, customer experience and product line.

The Central Bank of Russia also notes changes in consumer preferences when making payments. Over the past three years, the number of card payments has decreased by 12%. Russians are increasingly choosing alternative payment methods, such as QR codes, a fast payment system and biometric identification.

The regulator predicts that by 2026 more than 90% of all payments in the country will be made in a cashless way. This indicates the ongoing digitalization of the financial sector and a change in consumer behavior.^[1]

2023

Russian banks gave customers 500 billion rubles of cashback per year

Russian banks in 2023 returned ₽500 billion to their customers in the form of cashback. This result was achieved due to the active payment of goods and services using cards and pay services. This was announced in September 2024 by the vice-president of T-Bank Sergey Khromov.

According to him, the economics of payment methods directly affect customer loyalty, and cashback programs have become a key tool to stimulate the use of cashless payments.

Russian banks issued 500 billion rubles of cashback to customers

One of the main reasons for the increase in cashback payments was the development of cashless payment technologies. Most of the transactions, about 80%, are carried out through bank cards, 10% - through banks' own pay services and another 10% - using the Fast Payment System (FPS). The impact of these technologies on financial transactions not only contributes to faster transactions, but also increases customer loyalty through cashback programs.

Cashback programs are becoming more and more popular among bank customers, which is explained by the ability to return part of the money spent on various purchases. In 2023, this amount reached a record value, which was a significant indicator for the industry. The popularity of such programs will continue to grow, and the volume of cashback payments may increase in the coming years, T-Bank expects (forecast from September 2024).

By 2026, the share of non-card payment methods, such as digital wallets and fast payment systems, could rise to 35%. This will lead to a further expansion of cashback programs and an increase in payments to customers who choose new payment methods. Creating convenient conditions for customers and supporting different payment methods helps banks maintain a competitive advantage in the market.

However, there is a risk that when switching to new payment methods, such as QR codes or fast payment systems, customers may receive less cashback. So, according to experts, if they abandon traditional payment methods, Russians may lose up to ₽50 billion cashback annually. This is due to the fact that not all payment methods support refunds in the form of bonuses or cashback.^[2]

Bank expenses on loyalty programs increased by 54.6% to 286 billion rubles

The expenses of Russian banks on loyalty programs increased significantly, showing an increase of 54.6% and reaching ₽286 billion. This became known in early September 2024. Loyalty programs are now an integral part of the business of banks, retail chains and marketplaces, which contributes to their dynamic development.

According to Vedomosti, there is a desire on the Russian market to increase the personalization of loyalty programs. Bonuses, cashbacks, points and miles are becoming the standard customers expect from banks and retailers. Banks actively use these tools to build customer commitment, providing them with additional benefits. The increase in competition for customers among banks is especially noticeable, which led to the "Olympic Games" of cashbacks, as the head of VTB's transactional retail business department Rostislav Yanykin described the situation.

Research company Frank RG records that from 2022 to 2023 the amount of remuneration paid by Russian banks to their customers under loyalty programs. This confirms the growing interest in such programs, especially in the context of the development of the Fast Payment System (FPS), which allows customers to instantly transfer funds between their accounts. SBP simplifies the choice of profitable loyalty programs, which strengthens competition between banks.

Analysts note that one of the main goals of loyalty programs is to stimulate changes in customer behavior. So, according to the general director of the Orange loyalty service Andrei Pisarev, the average check of participants in loyalty programs in retail is 30% higher than that of customers who do not participate in such programs. This confirms the effectiveness of companies' investments in such mechanisms.^[3]

The number of customers with accounts from 100 million rubles in Russian banks for the year increased by 50%

By the end of 2023, 21.8 thousand bank customers in Russia had capital in the amount of 100 million rubles, which is 50% more than a year earlier. Such data in May 2024 led to the analytical company Frank RG. Read more here.

Russian banks for the first time in 10 years increased the number of additional offices

At the end of 2023, the number of additional offices of Russian banks amounted to 24,518. This is 1.2% more compared to the previous year, and the growth was recorded for the first time in 10 years. Such data are given in the materials of the Bank of Russia, published in mid-April 2024.

According to the Vedomosti newspaper, the total number of bank divisions has also grown. Their number reached 25,738, which is 1% more than the previous year. In 2022, there was a decrease in annual terms by 6.4%. The number of head offices remained unchanged - 361. At the same time, the number of branches on an annualized basis decreased from 449 to 417. Against this background, the number of mobile offices is growing - as of the end of 2023, 311 such points were operating against 298 a year earlier.

The number of additional offices of Russian banks amounted to 24,518

Alexey Popovich, First Vice President and Member of the Board of Gazprombank (GPB), says that bank strategies are aimed at opening new branches. For example, the GPB retail strategy, approved in 2023, provides for the opening of up to 200 offices (as of May 2024, the bank has more than 480 branches, including representative offices abroad) of a new format on the horizon of three years (until 2027).

At the same time, not all market participants see the economic benefits of the branches. Uralsib will increase the network and open offices, but not so aggressively: the economic benefit does not seem so clear to the bank, said its deputy chairman Stanislav Tyves. Post to the Bank, as noted by the director of retail distribution Anton Anishchenko, is enough of those branches that already exist.

There has been a fundamental shift in the market in terms of promotion channels. If earlier they talked more and more about the emphasis on the digital channel, now many players have begun to develop the physical network, "says Ivan Pyatkov, deputy chairman of the board of Alfa Bank.[4]

The number of banks with non-residents decreased to 96

In 2023, the number of banks operating in Russia with the participation of non-residents in the total authorized capital decreased to 96 from 108 credit institutions in 2022. The Central Bank of the Russian Federation announced this in a report published at the end of March 2024.

According to the regulator, the total authorized capital of banks in Russia by the end of 2023 increased by 12% compared to a year ago - up to 3.41 trillion rubles. It is also reported that in 2023, non-residents' investments in the authorized capital of existing credit institutions decreased by 9% and amounted to about 335.5 billion rubles.

The number of banks operating in Russia with the participation of non-residents in the total authorized capital decreased to 96 from 108

According to the Bank of Russia, the share of foreign capital in the total authorized capital of existing credit institutions as of January 1, 2024 amounted to 7%, which is 2 percentage points less than a year earlier.

In early March 2024, the Central Bank of the Russian Federation reported that in 2023 there were 12% fewer Russian banks in the country under the control of non-residents. Their number was 57. This number, as the regulator specified, includes institutions in which, even if formally they belong to Russian owners, the ultimate beneficiary is a foreign person.

Foreign banks must agree on the sale not only with the Central Bank, but also with the subcommittee under the Ministry of Finance of the Russian Federation. In addition, 45 banks need permission from the President of the Russian Federation. In 2023, Russian President Vladimir Putin approved transactions on seven banks: Ozone Bank and Ekom Bank were merged, replaced the owners of Money Mail Ru, Icano-Bank, Mercedes-Benz Bank Rus, Jay & T Bank and Intesa.

According to the Central Bank, by the beginning of 2023, non-resident shareholders in five credit institutions were under the control of Russian residents, and at the beginning of 2022 there were six such banks.

Annual Report 2023

The share of foreign participation in the capital of Russian banks decreased to 6.95%

The share of foreign participation in the capital of Russian banks by January 1, 2024 decreased to 6.95% from 8.97% a year earlier. The Bank of Russia published such data in mid-February 2024.

According to the regulator's materials, foreign investments in the authorized capital of Russian banks by the beginning of January 2024 reached 236.88 billion rubles, with a total authorized capital of 3.41 trillion rubles.

The share of foreign participation in the capital of Russian banks by January 1, 2024 decreased to 6.95%

Even more dynamically, foreigners leave the authorized capital of insurance organizations, where their total share as of January 1, 2024 amounted to 4.79%. A year earlier, this figure was recorded at 9.58%. Foreign investments in the authorized capital of credit institutions by January 1, 2024 amounted to 11.53 billion rubles, with a total authorized capital of 240.72 billion rubles.

At the end of 2023, Deputy Finance Minister RFIvan Chebeskov said that he admits the possibility of foreign investors participating in the privatization of Russian state-owned banks.

It seems to me that interest in banks can be very great now, "he said in an interview with RBC TV, answering a question about the privatization of state banks.

According to him, in general, Russian banks, including those with state participation, work quite effectively, have good indicators, even if compared with international banks.

It seems to me that they will be of interest to investors. The question is which investors. I think that here we can talk about some anchor investors, including foreign investors... We had foreign investors. Why will we not let investors who want to participate in this? And I think that there will be interest from the market too, - said the deputy head of the Ministry of Finance of the Russian Federation.

The agency in 2023 submitted to the government a list of about 30 companies with state participation for possible privatization.^[5]

Russian banks for the year increased cashback payments by 50 billion rubles to 200 billion

In 2023, Russian banks paid customers a total of about 200 billion rubles of cashback (taking into account bonuses in ruble equivalent). This is 50 billion rubles more compared to the previous year, when payments were estimated at 150 billion rubles. Such figures were published on February 12, 2024 by large financial organizations of the Russian Federation.

According to the Vedomosti newspaper, Tinkoff returned the most cashback to customers in 2023 - approximately 83 billion rubles, which is 28% more than in the previous year. Of these, 1 billion rubles were charged for purchases through its own Tinkoff Pay service.

Russian banks paid customers a total of about 200 billion rubles of cashback

Sberbank customers wrote off almost 140 billion bonuses under the SberThank program against 60 billion bonuses in 2022. At the same time, Sberbank uses a differentiated exchange system in the range of 0.5 − 0.8 rubles per bonus - depending on the subscription and the package of additional services. Thus, the actual amount of cashback payments in 2023 ranges from 70 billion rubles to 112 billion rubles.

VTB customers in 2023 received 24.3 billion accruals in bonuses and rubles, which is 6% more on an annualized basis. Sovcombank paid customers more than 3.5 billion rubles with points - plus 10% compared to 2022. Alfa-Bank and Дом.РФ Bank transferred twice as much cashback on an annualized basis, and in Promsvyazbank the amount of payments increased by 20%. Absolute indicators in these banks are not disclosed.

Banks associate the increase in cashback payments with the expansion of partner networks, an increase in the number of cardholders and an increase in spending by citizens as a whole. Most often, users receive cashback for everyday purchases in supermarkets, at gas stations, for car services, household goods and repairs, clothes and shoes, in pharmacies, for travel, taxis, transport and equipment.^[6]

Growth of precious metals stock to 71.1 tons

Reserves of precious metals in Russian banks by the end of 2023 reached 426.4 billion rubles, or 71.1 tons of precious metals in gold equivalent based on accounting prices. Such data were published by the Central Bank of the Russian Federation at the end of January 2024.

According to Interfax, citing materials from the regulator, in December 2023, reserves of precious metals in Russian banks decreased in terms of gold by 2 tons (3%), and in general in 2023 they increased by 9 tons (15%).

Reserves of precious metals in Russian banks by the end of 2023 reached 426.4 billion rubles

The agency explains that the stocks of precious metals in banks are a rather conditional indicator, it is calculated on a specific date and does not reflect the movements of precious metals on other days. Nevertheless, it can serve as an illustration of the scale of gold reserves in banks and general trends in this segment, the publication adds.

RBC writes that Russian banks store physical gold, as a rule, in the interests of their large customers - gold miners and refineries. Historically, the extraction of precious metals is seasonal in nature, the peak of bullion supplies falls on September, says a representative of Rosselkhozbank.

The increase in physical gold reserves on bank balance sheets compared to 2022 is associated with the restoration of trade in precious metals "inside and outside Russia," the representative of VTB notes. He also attributes this to an increase in the number of "precious metal market participating banks.

There is another factor that stimulated the accumulation of gold by market participants, says the board. Realist of the Bank Vladimir Elmanin Banks that were engaged in the export of gold limited these operations in connection with the introduction of export duties, he explained. In September 2023, the government announced the introduction of export duties linked to the exchange rate ruble for a wide list of goods.^[7]

The Central Bank of the Russian Federation has not revoked licenses from banks for more than 16 months - this has never happened

The Central Bank of the Russian Federation has not revoked licenses from banks for more than 16 months, which has never happened in the history of modern Russia. This was announced on December 30, 2023 by RIA Novosti based on the results of its own market analysis.

According to the agency, the last case of revocation of the license in Russia dates back to the summer of 2022 - from August 12, the Moscow Krosna Bank lost it.

The publication notes that since the arrival of the head of the Central Bank Elvira Nabiullina in 2013, the banking sector has begun to actively cleanse itself of weak and unscrupulous credit organizations. This process began to slow down in 2019, and in 2022 only two banks forcibly left the market (this was the fewest licenses revoked in at least 10 years).

Earlier, State Secretary-Deputy Chairman of the Central Bank of the Russian Federation Alexei Guznov noted that 2023 was the first year when the Bank of Russia did not revoke a single banking license. This fact indicates that the banking system is stable and that the financial recovery program carried out at one time yielded results, he said.

By the end of November 2023, there were 360 credit institutions in Russia, including 324 banks: 224 with a universal license and 100 with a basic license. At the same time, in 22 regions there are two or three local banks, in 25 regions there is only one local bank, and in 26 regions there are no local banks at all.

According to the President of the Association of Russian Banks, Academician of the Russian Academy of Sciences Garegin Tosunyan, the long lack of revocation of bank licenses is a meaningful rejection of the policy of reducing the number of banks.

{{quote 'I do not see the need to hypertrophy the problem, but I consider the philosophy of depriving banks of licenses, which has lasted for several years, not the most optimal. There are other ways of regulatory work with credit institutions, "Tosunyan said^[8] }}

Russian banks practice an unfair scheme to confirm consent to receive additional services

The chairman Central Bank of Russia on October 3, 2023 announced the growing popularity of the fraudulent scheme, the Russian banks which is used in the conclusion of online.credit

We see a problem in online lending, which leads to the purchase of both hidden insurance and other unnecessary services for people. And including worries, for example, the practice of confirming SMS, verification codes, what actions are provided. A citizen is issued a loan and a huge amount of insurance at the same time. A person does not realize that he simultaneously approves this insurance by SMS confirmation, - said the head of the Bank of Russia Elvira Nabiullina.

According to Elvira Nabiullina, such actions are a direct violation of the current legislation. For October 2023, the main bank countries is preparing a bill that implies a significant increase penalties for such unfair actions by credit financial institutions.

At the same time, banks love this method very much, since the margin in this case is much more attractive than the usual earning options. In the context of digitalization and the development of online banking, the process of imposing such services is easier from the point of view of the bank itself. That is, there are more conditions under which an additional service can be imposed. This is due to the lack of physical contact with a bank employee, who can be said not, - explained Anton Nemkin.

This is largely due to the low level of digital competencies of some categories of the population, for example, pensioners. Thus, banks can hide full information about a particular service. For example, exclude information from a web page that insurance can be disabled. That is, to provide information in such a way that taking a loan is possible only with the obligatory inclusion of insurance, although this is not the case. Or building a client path in such a way that the user thinks that he is still in the middle of the application and there is an opportunity to change his mind, clarify the information, but then the coveted code comes and the citizen turns out to be with a loan, and with insurance, and with a bunch of unnecessary functions, - said Anton Nemkin.

Therefore, we must not allow all IT capabilities to be used for fraud and deception, especially when it comes to financial institutions with a proven reputation. The amendments proposed by the Central Bank are a logical step that will help resolve the problem. I think that it will not be superfluous to act through educational policies, especially in relation to the most unprotected segments of the population, "the parliamentarian concluded.

Central Bank named 5 vulnerabilities in the Russian financial sector

The Bank of Russia has identified five new vulnerabilities in the financial sector. They are described in the review of financial stability, which the regulator published on May 26, 2023.

The Central Bank considers the first vulnerability to further restrict access to payment infrastructure in "toxic" currencies. As stated in the review, the situation with settlements and correspondent relations in "toxic" currencies continues to deteriorate as sanctions expand.

The second vulnerability is the growth of citizens' savings in foreign instruments. "The vulnerability associated with the growth of citizens' savings in foreign instruments is still limited (an increase in the level by 4.1 percentage points from January 1, 2022 to 19.2%), citizens continue to mainly invest in ruble deposits (42.2% of citizens' savings), and investments in Russian shares also increased during this period.

The third vulnerability is the growth of the debt burden of citizens. As the regulator points out, in the second half of 2022, consumer lending was recovering, which was accompanied by a weakening of lending standards. To prevent excessive debt burden of citizens, since the beginning of 2023, macroprudential limits have been set for banks and microfinance organizations to issue consumer loans and loans to borrowers who spend more than 80% of income on debt payments, as well as limits on long consumer loans (from five years).

The fourth vulnerability is imbalances in the residential real estate market and risks of project financing. According to the Central Bank, by the end of the 1st quarter of 2023, as a result of the action of preferential programs and their combination with marketing schemes from banks and developers, the difference in prices of primary and secondary housing increased to 40%.

The fifth vulnerability is the interest rate risks of banks amid rising public debt.

[4q 2022 1q 2023.pdf FINANCIAL STABILITY REVIEW|https://www.tadviser.ru/index.php/Файл: 4q 2022 1q 2023.pdf FINANCIAL STABILITY REVIEW]

The Central Bank of the Russian Federation allowed banks to open branches in armored cars

The Central Bank of the Russian Federation simplified the procedure for banks to open mobile points of cash operations and changed the name of the division to "mobile office." At the same time, the list of banking operations that a mobile office has the right to carry out is expanding. The corresponding instruction of the regulator, which he announced on April 6, 2023, will enter into force on October 1, 2023.

In accordance with the decision of the Central Bank, mobile units can be opened on the basis of a serviceable armored vehicle equipped with communication equipment, cash equipment and special identification marks.

These changes take into account the proposals of financial market participants, including those expressed within the framework of the "regulatory guillotine." They will allow credit institutions to expand their capabilities to provide banking services in remote and sparsely populated territories, in disaster and emergency zones, the Bank of Russia explained.

The mobile office will be able to additionally carry out operations on lending to citizens, transfers to their accounts and without opening a bank account, carry out cash services in full, and provide collection services to companies. The bank's mobile office will be able to carry out all or some of these operations, but, as emphasized in the Central Bank document, the functionality of the office cannot be reduced exclusively to currency exchange.

If earlier a mandatory minimum number of employees of such divisions was established, now banks will independently determine the required number of employees. The Central Bank explained that the transition to work according to the new standards is as simplified as possible - market participants will not need to rename existing mobile points in connection with the change in name to "mobile office," the Central Bank added.^[9]

2022

Assets of Russian banks increased by 14.3 trillion rubles

The assets of Russian banks in 2022 increased by about 14.3 trillion rubles compared to 2021 and reached 134.8 trillion rubles. This is stated in the review of the Central Bank of the Russian Federation, which was published on April 11, 2023.

As Kommersant writes with reference to the materials of the regulator, the share of the 10 largest banks in the Russian Federation in 2022 decreased by 1 percentage point and amounted to 77.3%. In recent years, the share of the top 10 has grown continuously: from 2018 to 2021, it increased by a total of 3.2 pp. The lost percentage point was distributed by players from 11th to 100th place by assets, the publication notes.

Experts interviewed by the newspaper consider this decline a temporary deviation from the overall trend. This also confirms that in the main business - lending - market leaders have increased their share. The dynamics of last year regarding the decline in the shares of the largest players is rather a temporary phenomenon, everything will return to increasing concentration, said Yuri Belikov, Managing Director for Validation at Expert RA. In addition, the main areas of lending show an increase in concentration.

And this is understandable, as demand for borrowed funds remained strong in 2022, and top players could better satisfy it by more stable access to long funding, he said.

At the same time, it is difficult for small private banks to find new growth points in the current environment, since funding will continue to be mainly held by retail clients and institutional investors. In turn, on their part, confidence is higher in large state-owned banks.

The Central Bank does not give the distribution of banks. According to the ranking Interfax"," in the top 10 at the beginning of 2022 were, Sberbank,, Gazprombank,, Alfa-Bank,,, and Rosselkhozbank Promsvyazbank. ICD FC Otkritie Sovcombank Raiffeisen Bank Their assets grew at the end of 2022, albeit at different rates, the newspaper notes.^[10] from^[11]

The Central Bank of the Russian Federation named the banks whose bankruptcy was prevented

At the end of March 2023, the Central Bank of the Russian Federation, as part of its reporting, named the banks whose bankruptcy was prevented in 2022. We are talking about the Bank of Non-Core Assets (BNA) Trust, Promsvyazbank and MINnBank.

According to the regulator, during 2022, four credit institutions had the following grounds for implementing bankruptcy prevention measures provided for by Article 189.10 of Federal Law No. 127-FZ:

• absolute decrease in the amount of equity (capital) compared to their maximum value achieved over the past 12 months, more than
• than 20% in case of simultaneous violation of one of the mandatory standards,
• established by the Bank of Russia (three credit institutions);
• violation of any of the bank's capital adequacy ratios established by the Bank of Russia (two credit institutions).

At the same time, the fourth bank, whose bankruptcy was prevented in 2022, was not named in the Central Bank.

The Central Bank reported that BNA continued to work with problematic and non-core assets during 2022, which allowed the credit institution to partially return Bank of Russia deposits in the amount of 44.3 billion rubles. As a result, the debt of BNA to the Bank of Russia as of January 1, 2023 amounted to 1 trillion 539 billion rubles. The Central Bank decided to continue the work of the BNA for the next three years, which will increase fees on distressed assets. The liquidation of the Trust is planned in 2027.

The Bank of Russia also clarified that a number of banks were unable to repay their loans from the Central Bank. As a result, their pledges were transferred to the balance sheet of the Central Bank - federal loan bonds issued by the Ministry of Finance. Their total volume in the ownership of the regulator at the end of 2022 reached 222.8 billion rubles (in 2021 - 38.5 billion rubles). The regulator explained that the increase in the balance on securities is associated "mainly" with the settlement of obligations unfulfilled by banks under repo transactions with it.

CBR ANNUAL REPORT 2022

Large banks issued more than 150 billion rubles in the form of cashback

Large banks, including Sberbank, VTB and Tinkoff Bank, paid 150 billion rubles of cashback to customers in 2022. This became known on February 7, 2023.

On this day, Vedomosti issued an article according to which Tinkoff Bank returned the most to customers in 2022 - during this period the bank wrote off 65 billion bonuses in the form of rubles, 70% more than in 2021. More and more manufacturers and stores have begun to use financial loyalty programs as an alternative to discounts, a representative of a credit institution explained to the newspaper.

Participants in Sberbank's main loyalty program, Sberbank, received 60 billion bonuses in 2022, which is 5% more than a year earlier. Over the past year, VTB has accrued customers almost 20 billion bonuses, giving them the choice to pick them up as points or rubles.

Sovcombank wrote off 3.3 billion rubles to customers, which is 38% more than in 2021. The volume of accruals to retail customers of Promsvyazbank increased by almost 30% year-on-year. The Moscow Credit Bank (MKB) grew by 1.7%, while customers used 13% more bonuses than a year ago.

As for other organizations, in Promsvyazbank the volume of accruals to retail customers increased by almost 30% year-on-year, and entrepreneur clients used more than 40 million rubles of cashback. At the Moscow Credit Bank, the volume grew by 1.7%, while customers used 13% more bonuses than a year ago. The banks did not disclose the absolute figures.

By the end of 2022, consumer preferences began to move toward more social spending, with customers increasing transactional activity in everyday grocery and pharmacy shopping. Interest in mile and bonus loyalty programs in the travel business was gradually declining. Experts interviewed by the publication attribute this to the fact that during periods of crises, citizens try to take care of themselves and their housing.^[12]

DIA: 4 thousand "runaway bankers" stole 2 trillion rubles

The Deposit Insurance Agency (DIA) by the end of December 2022 estimates the damage from the actions of 4 thousand so-called "runaway bankers" at 1.5-2 trillion rubles. The DIA is going to look for them both in Russia and abroad. This was stated in an interview with Rossiyskaya Gazeta by the general director of the DIA Andrei Melnikov.

"Fugitive bankers" are the owners or top managers of banks that led to the bankruptcy of credit institutions or a significant deterioration in their financial situation.

Anti-Russian sanctions "slightly slowed down" the work of law firms abroad, Melnikov confirmed - some of the foreign lawyers refused to work, "but others came in their place."

Work in this direction continues. And we see decisions that are made in favor of the bank's creditors. We are acting in their interests. Not the DIA is being sued as the DIA. The bank from which the money was stolen is being sued, - explained the head of the state corporation.

One of the "runaway bankers" is Georgy Bedzhamov, who is accused of withdrawing 113 billion rubles from Vneshprombank through the issuance of deliberately bad loans to fictitious companies affiliated with the owners and management of the bank. Bejamov lives in Britain by December 2022, where he was declared bankrupt. The DIA hopes that the British decision will "speed up the procedure for returning funds to the bankruptcy estate for further transfer" to the victims, Andrei Melnikov said.

He noted that after the ex-banker is declared bankrupt, the search for property begins.

Recently, also in London, we went this way in relation to the former "serial" banker Anatoly Motylev. As a result of declaring him bankrupt, our lawyer gained access to hundreds of offshore companies through which he conducted operations. The process towards Motylev inspires very great optimism. Of course, the large sums that he brought out, we will not return to Russia right tomorrow, but we will return them. And let's give it to creditors, "Melnikov said.[13]

Additional capitalization of 29 banks for 180 billion rubles

The Central Bank revealed the scale of additional capitalization of banks due to the crisis. In 2022, 29 banks received additional capitalization, the Central Bank said. The amount of injections amounted to about 180 billion rubles.

Closure of 926 bank branches for the 2nd half of the year

From July to December 2022, Russian banks closed 926 offices. The reason for the closure is to optimize the network of branches and increase the profitability of each individual point.

The number of banks in Russia has decreased by 3 times in 10 years

By November 2022, there are 327 banks in Russia, which is almost three times less than ten years earlier - in 2012 there were 922 credit organizations in the country. This is evidenced by the data of the Central Bank of the Russian Federation, published in November 2022.

The main reason for the closure of banks is the revocation of the license by the regulator. There are also takeovers from larger financial institutions. In general, the financial sector in the Russian Federation is developing by consolidating the assets of large market players, and small banks risk much more.

Earlier, the head of the ACRA rating agency, Ekaterina Trofimova, said that in a few years about 10% of market participants fell out of the banking system annually. In her opinion, the process will continue for the next five years, although in a less acute form - about 5-7% of banks per year for one reason or another will leave the market.

According to experts, general economic problems are one of the main reasons for the decline in the number of banks. Falling income levels and low solvency of the population, their sharp decline, distrust of the country's financial sector, inflated needs of financiers all determine economic instability.

In addition, the digitalization of the economy and society is also at the heart of the reduction in the number of banks. People are used to making transfers, opening deposits over the Internet. And they trust exclusively well-known market players, weak structures cannot compete with them in the field of information technology. Filling the site and developing online services requires money, which small bankers do not have, they have to leave the market.

Another reason for the decline in the number of banks in Russia is the COVID-19 coronavirus pandemic, which hit all industries, including financial ones.^[14]

Putin approved a list of 45 banks in which transactions with shares of foreigners cannot be made

Russian President Vladimir Putin approved a list of 45 banks that do not allow transactions with shares and shares of foreign citizens from unfriendly states. This became known on October 26, 2022.

The document was published on the portal of legal information^[15]

Transactions with such shares in these banks can only be made with a special permission.

The list includes, among other things, OTP Bank, Raiffeisen Bank, Unicredit Bank, Yandex Bank and Citibank.

Earlier it was reported that from August 8, 2022, the Moscow Exchange will allow non-residents from friendly countries and Russian beneficiaries to bid only in the urgent market^[16].

Mass opening of correspondent accounts in yuan, tenge and Belarusian rubles

Under sanctions pressure from the United States and the EU, against the background of the conflict in Ukraine, it is necessary to reorganize supply chains not only for companies for raw materials and goods, but also for banks for money. The directions of perestroika are also similar, conditionally from west to east. Currencies are changing, new correspondent accounts are opening.

By the beginning of autumn 2022, almost 90% of Russian banks had accounts in Chinese yuan, dollars in - only 63%, in Kazakhstani tenge and Belarusian - rubles more than 50%, in - Turkish lirah a quarter, and in Kyrgyz somas and Tajik somons - a fifth. In addition, at least seven banks opened correspondent accounts in and. banks UAE Uzbekistan

Central Bank approved a list of systemically important banks

In early October 2022, the Central Bank of the Russian Federation approved the list of systemically important credit institutions (SZKO) of Russia. It included:

• Unicredit Bank;
• Gazprombank;
• Sovcombank;
• VTB;
• Alfa-Bank;
• Sberbank;
• Moscow Credit Bank;
• Otkritie FC Bank;
• Rosbank;
• Tinkoff Bank;
• Promsvyazbank;
• Raiffeisen Bank;
• Rosselkhozbank.

They account for about 77% of the total assets of the Russian banking sector, the Central Bank noted. The list approved by the Central Bank remained unchanged.

Systemically important are the largest credit organizations in the country, the stability of which affects the entire banking system. When classifying banks as systemically significant, the size of the credit institution and the amount of funds raised, including deposits of citizens, are taken into account.

The Central Bank imposes increased regulatory requirements on systemically important banks. In addition to a capital adequacy maintenance surcharge of 2.5%, they must maintain a system significance surcharge of 1%. Thus, the minimum capital adequacy ratio for SZKO with allowances should be 11.5%.

The list of SZKOs is formed in stages. At the first stage, a generalizing result of quantitative indicators of the activities of credit institutions (size, interconnectedness with credit and other financial organizations, the volume of deposits of individuals) is determined. At the second stage, the absolute value of attracted deposits of individuals is estimated, at the third stage, the share of banks' assets in the total assets of the banking sector is estimated. The Central Bank can also take into account additional information when including the bank in the list of systemically important.

As reminds, TASS the criteria for classifying banks as systemically significant were determined in January 2014. Initially, it was planned to allocate 50 such credit institutions, later their list was reduced.^[17]

Central Bank requested from banks lists of employees for reservation from mobilization during the conflict in Ukraine

At the end of September 2022, it became known that the Central Bank of Russia requested lists of employees for booking from credit institutions, but allowed no more than 30% of the state to be included in them. According to Kommersant, all systemically important banks received the request, and in total - about a hundred credit institutions and banking groups. Banks were supposed to send lists to the regulator on September 28, 2022.

There is no separate list of vacancies subject to postponement from partial mobilization, two sources of the publication specify. The main criteria for providing a reservation are the availability of higher education for an employee and the critical importance of his work. One of the sources of the publication said that insurance organizations make up the same lists.

By the beginning of September 2022, there were 361 credit institutions in Russia with a staff of more than 600 thousand people. According to the vice-president of the Association of Banks of Russia Alexei Voilukov, at the end of September 2022 there was a meeting with the first deputy chairman of the Bank of Russia Dmitry Tulin, based on the results of which a list of banks was formed to whom the letter was sent.

These lists will be sent to the General Staff centrally through the Central Bank, - said Voilukov.

The head of the Central Bank Elvira Nabiullina in September 2022 said that specialists responsible for critical infrastructure, payments and settlements, collection, functioning and protection of information systems, as well as those working with the population and enterprises and going on duty shifts, will receive a delay from mobilization.

Nikita Filippov, head of the De Jure bar bureau, explained to Kommersant that "for small banks to lose a small but significant amount of staff when they have only a few specialists in each category can lead to the loss of a real opportunity for work and, as a result, to the collapse of the activities of their clients." At the same time, for large banks, the opportunity "to redistribute resources and allow the mobilization of even a sufficiently large number of numbers may turn out to be an easier process," the lawyer said.^[18]

Since the beginning of the year, Sberbank has closed 159 branches, other banks in Russia - 511

On June 20, 2022, it became known about a significant reduction in the number of bank branches in. Since Russia the beginning of 2022, a total of 670 offices have been abolished, of which 159 are branches. In Sberbank May 2022 banks , 137 branches were closed, of which Sberbank accounted for 70 points.

Sberbank did not specify in which regions the branches were closed, stressing that "the coverage of territories by offices remains at the same level." The bank recalled that most of its 100 million customers use the mobile application. In addition, a mobile manager and a digital office are developing, services are provided by mini-offices in shopping centers and payment agents.

According to experts interviewed by Kommersant, this situation can cause difficulties for users of banking services. For example, in the event of a complete withdrawal of the bank from the region, customers will have to use the partner network of ATMs, but they will not be able to make transfers and deposits exceeding the established limits.

According to the previously issued recommendations of the Central Bank of the Russian Federation, the bank should warn customers in advance about the possible closure of the office, as well as provide customers with limited movement with the opportunity to receive the usual set of financial services after closing the office/dismantling the self-service device. In addition, by June 2022, an initiative is being discussed to provide the possibility of interbank transfers between accounts of one consumer within 1.4 million rubles ( the amount of insurance compensation for deposits) per month without a commission to open a bank deposit. The Central Bank supports this initiative, they say there.

In total, as the newspaper notes, by the beginning of June 2022, the number of branches of all banks in Russia amounted to about 25.2 thousand, of which 13.1 thousand were Sberbank offices.^[19]

The number of bank offices decreased by 7% over the year to 25.5 thousand

According to the Central Bank, Russian banks in early 2022 again began to actively reduce branches. The number of offices closed by credit institutions in March was 184, a record result in three years.

As of April 1, banks used 25.5 thousand additional offices - 7% lower than a year ago, in two years the decrease was 11%. Over the past six months, the additional offices of VTB, Sovcombank, FC Otkritie, Post Bank have been noticeably reduced (with the exception of representative offices at Russian Post, where the growth was 35%).

2021

7 Russian banks are among the largest acquirers in Europe

Seven Russian banks were among the largest acquirers in Europe at the end of 2021. This is a study conducted by Nilson analysts and published in May 2022. Read more here.

Russian banks closed a record number of branches - 1800

In 2021, Russian banks closed a total of about 1800 branches (by 6.2%), and this figure was a record in 2018. Such data on January 26, 2022 were published by RIA Novosti with reference to its own calculations based on data from the Central Bank of the Russian Federation.

According to the head of the analytical department of the bank BKF , Maxim Osadchy, the acceleration of the pace of office closure is associated, among other things, with a decrease in the number of credit institutions. So, according Russia to the Central Bank, the number of banks in 2021 decreased by 33 - to 333. Other reasons, according to the expert, are digitalization and the coronavirus pandemic, COVID-19 which contributes to the transition to remote banking. The reduction in the number of bank offices is a steady and natural trend, he concluded.

The largest number of bank offices in 2021 was closed in:

• Moscow (196 branches);
• Moscow region (194);
• St. Petersburg (99);
• Tyumen region (81);
• Mordovia (74);
• Nizhny Novgorod region (56);
• Sverdlovsk region (55);
• Tatarstan (43);
• Krasnoyarsk Territory (42);
• Khanty-Mansiysk Autonomous Okrug (3).

The study notes that credit institutions in Russia in 2021 closed offices in most regions of the country. The exception was the Chukotka Autonomous Okrug, in which one service point was opened in 2021, as well as Kalmykia, Ingushetia, Tuva and the Nenets Autonomous Okrug, where the number of bank branches has not changed over the past year.

Slightly less than a third of the closed offices fell on: Sberbank according to RAS Bank, in 2021, 524 branches were folded - the maximum since 2017. The bank explained this by combining low-traffic branches in large cities and located next to each other.^[20]

The import of cash currency into Russia in December amounted to $4.97 billion

In December 2021, the import of cash currency into Russia amounted to $4.97 billion. This is the fourth record figure in history: banks imported more dollars and euros with paper banknotes only amid the panic of March 2020 ($6 billion) and in 2014 ($9.5 billion in March and $10.1 billion in December).

Compared to the average of January-November - about $2 billion per month - the delivery of cash currency jumped 2.5 times, and in terms of the weight of 100-dollar bills reached 50 tons, or 10 average Kamaz dump trucks.

Up to 8 % of Russian banks are predicted to close in the next 10 months

Rating agency "Expert RA" presented a forecast for 2022 in the review "Health Index of the Banking Sector." On the horizon of the next four quarters (periods from 01.10.2021 to 01.10.2022) to 29 credit institutions, or 8.5% of the calculated base of the index, are in the zone of increased risk of termination of activities. This became known on November 29, 2021.

The calculation of the index and the agency's forecasts are based on the comparison of the probability of default of each bank based on the frequency of defaults historically characteristic of the rating level that is actually assigned to the bank or rated as the most likely. As of 01.10.2021, 48.8% of credit institutions are classified in rating categories not higher than B, 29.1% - in rating categories BB and BBB, 22.1% - in category A to AAA, corresponding to high credit quality.

Despite all the cataclysms associated with the pandemic, 2021 turned out to be the most successful for banks in history. The Central Bank predicts that at the end of the year, credit organizations can earn a record profit of 2.5 trillion rubles, which will be 1.5 times more than in the best years. According to the results of the third quarter of 2021, this indicator reached 91.5%, which was the best result in two years. Earlier, the Central Bank explained the maximum profits of banks by an increase in interest income amid a rapid growth in lending.

But the successes of the sector as a whole for the year did not interfere with the process of individual participants leaving the market. Over the past four quarters, 45 credit institutions have ceased operations, including 32 on regulatory grounds, 7 as a result of voluntary license surrender, 6 as a result of reorganization in the form of joining other banks^[21].

License Revocations by Year

In the first half of 2021, 28 credit institutions left the market - 87% more than a year earlier, according to Expert RA. The forecast for the number of defaults for the coming year has hardly changed: another 30 banks may be left without a license.

Illegal pressure of foreign payment systems on Russian banks

On August 20, 2021 Russian , online retailer Wildberries issued a statement in which it announced the beginning of foreign pressure payment systems on Russian banks due to the company's decision to provide discounts when paying with cards, and WORLD Express Checkout through SberPay the publication of foreign system commissions. More. here

How banks cheat customers

In August 2021, the Bank of Russia announced the main types of unfair practices of banks:

1. Mis-selling-Sells one financial product under the guise of another. For example, investment instruments under the guise of a contribution.

2. Opaque pricing (Mispricing) - misleading about the size of fees or fair value: complex tariffs in which overpayment is hidden.

3. Related sale - its classic manifestation was the imposition of insurance when issuing a loan.

4. Unfair information - for example, the promise of guaranteed income for products that are not a contribution.

5. Selling inappropriate products - knowledge, risk appetite, age and other human features are not taken into account.

Cut financiers' blacklist by 4.3%, to 7,182

The black list of financiers, which is maintained by the Central Bank of Russia, in 2020 decreased by 4.3% - to 7182 people from 7504 in 2019. This data was disclosed by the regulator itself. Read more here.

2020

The volume of the cashback market reached 250 billion rubles

The annual volume of the cashback market is estimated at almost 250 billion rubles. These funds are distributed among no more than 17% of cardholders and their average cashback per month is about 500 rubles. According to Sberbank's reporting, in 2020, expenses on loyalty programs reached 45.4 billion rubles (100 million customers). In 2020, Tinkoff Bank, together with partners, paid 10 million customers 25 billion rubles. Gazprombank in 2020 paid customers cashback for 3 billion rubles. Home Credit Bank on debit cards "Benefit" paid about 1 billion rubles.

The Central Bank of the Russian Federation may receive the right to limit the commission of payment systems charged from banks

Central Bank of the Russian Federation may receive the right to limit payments bankspayment systems (,, Visa MasterCard"" and World others) for the implementation of transfers from, the cards corresponding bill was prepared by the deputies. State Dumas This became known on December 10, 2020. More. here

S&P estimated the troubled assets of Russian banks at 11 trillion rubles

In early September 2020, Standard & Poor's (S&P) estimated the volume of distressed assets of Russian banks at about 10.9 trillion rubles, which corresponds to almost half of the Russian budget, three annual budgets of federal medicine and almost 12 annual budgets of the entire higher education system in the country.

We are talking about problem loans, which, according to analysts, will account for 12-15% of banks' loan portfolio (by August 1, 2020, its total amount was 72.845 trillion rubles).

Compared to the beginning of 2020, the share of problem loans on bank balance sheets may double, which will require banks to send an amount equivalent to 2.5-3% of portfolios to reserves, S&P warns.

According to the agency, the financial results of the 14 largest Russian banks for the first half of 2020, reflected in the statements, are 21% worse than in the same period of 2019, mainly due to an increase in reserve contributions, which will eventually be reflected in the profit and loss items of banks.

Analysts expect that the unfavorable economic situation will reduce the ability of some companies, small and medium-sized businesses, as well as individuals to service debt obligations in 2020-2021.

As part of the basic scenario, the agency expects in 2020 an increase in the expenses of the largest Russian banks on the formation of reserves to 2.5-3% of the average volume of loan portfolios compared to 0.84% in 2019. This means that the financial results of some banks will only be at break even.

At the same time, banks continue to increase reserves on loan portfolios. In particular, Sberbank in its statements for eight months of 2020 indicated that expenses on total reserves for this period amounted to 441.4 billion rubles, which is almost five times higher than in 2019.^[22]

Russian banks transfer employees to work  with accommodation in offices against the background of the COVID-19 epidemic

At the end of April 2020, against the background of the COVID-19 epidemic, Russian banks began to transfer employees to work with accommodation in offices. Sovcombank and Zenit are the first to introduce such an opportunity. Banks promise increased salaries and bonuses for this.

The first deputy chairman and co-owner of Sovcombank, Sergei Khotimsky, told RBC that they transferred about 10 specialists to a round-the-clock mode in the office to ensure uninterrupted operations. All of them are responsible for daily calculations. Employees living in the bank are completely isolated, says Khotimsky. They sleep, eat, wash in the office too. People went to such conditions voluntarily, for this they are paid increased wages.

This concerns the heart of the bank - these are treasury operations, the most critical for continuity, which cannot be easily re-alloyed (redistributed) to different places, - said Khotimsky, speaking about where the work of 24/7 employees is ensured.

According to the first deputy chairman of the board of Zenit Bank Konstantin Rybakov, the organization purchased the things and food necessary for living, provided medical support, and briefed and consulted with employees. Workers who agreed to isolation in the office passed the analysis on. coronavirus COVID-19

A number of other large Russian banks are not yet ready for employees to live at work. This publication was announced in VTB, Raiffeisen Bank, Rosbank, Promsvyazbank and Tinkoff. Most of their employees have been transferred to remote work, but some specialists still have to come to offices.

Back in mid-March 2020, many credit organizations began to transfer employees to remote work. Also, banks imposed restrictions on visiting offices for employees who have recently returned from abroad.^[23]

What banking products are used by Russians

Companies VK (formerly Mail.ru Group) and ResearchMe conducted a study and learned which banking products users prefer RuNet and how they change investments advertisers in this category. This was reported on February 4, 2020 Mail.ru in the Group.

Every second respondent is served in one bank, a third are clients of two banks, and 15% are three to five banks.

9 out of 10 use services for individuals, 7% are served as individual entrepreneurs and legal entities.

Bank cards are the most popular product in all age categories. Every fifth participant in the survey began to use them earlier than 18 years old, 29% started a card between the ages of 18 and 24, 16% - from 25 to 34 years old.

The most common are salary cards: more than half of the respondents have them. Debit cards issued independently are used by 42% of respondents. Women issue them more often than men - 46% and 38%, respectively. These cards are most popular among young people: 53% of respondents under the age of 25 have them. 69% of debit card holders have one such card, 26% use two or three, 5% - more than four.

Credit cards are more often used by people over 35: almost 40% of respondents in this age group have them. The lowest interest in this banking product among users under 25 years old - only 19% have a credit card. 70% of credit card holders have one card, every fifth - two or three, every tenth - more than four. 68% use a credit card once a month and more often.

Only 8% of respondents have installment cards so far. 82% of them have one installment plan card, 78% use such a card more than once a month.

Among users who have issued a mortgage, there are one and a half times more men than women - 9% versus 6%. Men are also twice as likely to use investment products.

Contactless payments are used more often than others by people under 25. On average, 14% of survey participants have a virtual card and one in five users is under 25 years old.

Insurance selects 28% of users. Of these, 46% insure health are life, 42% are deposits and loans, 33% are property, and 26% take out travel insurance.

Every second user of banking products receives cashback. 39% use bonuses from bank partners (for example, additional discounts), every tenth - premium service.

Users prefer calls and online communication with the bank to trips to branches - this was confirmed by 73% of survey participants. Among women, this figure is higher than among men - 76% versus 69%. The trend is most pronounced among young people: 81% of respondents under the age of 25 chose this answer.

91% of respondents use online bank services, 81% of them choose a mobile application and 54% choose a web version.

Users choose Internet-banking first of all, to solve three main problems: money transfer (76%), payment for services (65%) and cost control (48%). Women are more likely than men to use apps to get help and chat with bank representatives chat in - 19% versus 14%. Among men, there are more of those who use banks' mobile applications for currency exchange (9% versus 5% of women).

For a month, bank branches were visited by every second participant in the survey, and almost a quarter were there from a month to six months ago. Users still prefer to open new products offline - this was confirmed by 45% of the survey participants.

As of February 2020, users most often learn about new products and offers of the bank from SMS (39%), Internet advertizing (25%), and TVadvertizing sites (banks 22% each).

Audiences under 25 are more likely than other users to learn about new products from digital resources: from advertising on the Internet (32%), social networks and bank channels (26%), social networks and channels about finance (18%), as well as from the recommendations of bloggers and famous people (11%).

Every fifth user over 45 listens to the recommendations of bank branch employees.

In the first three quarters of 2019, investments of banking industry advertisers in Internet marketing on Mail.ru Group resources increased by 83% compared to the same period in 2018. The growth is due to the active promotion of payment cards, consumer loans and services for business.

The most popular type of ads in the category is multi-format. It allows you to automatically adjust ads to the layout of the location.

In second place in the third quarter, promo posts in the feeds of social networks, which account for a third of the costs of advertisers in the banking industry. The top of popular formats also includes banners, prerolls and Carousel.

Most of the budgets (83%) are invested in cross-platform promotion, which allows you to optimize the frequency of advertising and spending.

According to the results of the third quarter of 2019, category advertisers mainly chose a payment model for performance indicators (60% of investments, which is 20% higher than in the first quarter of 2018).

Targeting allows you to personalize advertising messages. 95% of budgets are for geotargeting campaigns, 91% for age-targeted campaigns, 56% for interests. Interestingly, when promoting banking products and services, advertisers do not often choose gender targeting.

Advertisers are actively using remarketing - 29% of budgets are campaigns with the connection of this tool. Remarketing allows you to build communication with users who are already familiar with the company.

Contextual targeting is another tool popular in the banking industry that allows you to display ads according to user requests on social networks, marketplaces and classifieds.

"Banks are one of the most technologically advanced industries in Russia. This applies both to the digitalization of services and solutions of players, and to the approaches of companies to the promotion and development of business in general. Users actively respond to market trends and switch to digital services that allow them to solve daily problems faster and easier. Advertisers explore audience needs and develop new approaches to customer communication. Social media and targeted advertising are popular channels in the banking category that allow you to rebuild from competitors and avoid an overheated auction in traditional contextual advertising, " noted Irina Alekseeva, Deputy Commercial Director of Mail.ru Group

2019

Stagnation of banks' business

The main result of 2019 for the banking sector - business stagnation has become chronic. The growth rates of nominal assets (2.7%), loans to the non-financial sector (1.2%) and deposits (7.3%) are the lowest in the last three years. Also, the regulator could revoke 2.5-3 times more licenses.

At the end of 2019, the ratio of assets to GDP will fall below 90% from the maximum 99.9% in 2015. The slowdown in GDP growth is reducing the capabilities of banks' corporate business. It was in the last three years that there was a real increase in the regulatory burden, increasing the imputed costs of the cost of banking services. As a result, Russia is moving away from the generally accepted ratio of bank assets to GDP of about 110-130% for leading countries . @banksta

Less than 500 operating banks remain in Russia

The number of banks from which the license was revoked increased significantly in 2018, but the total size of their assets decreased. This is evidenced by the data of the "Monitoring of the economic situation in Russia," released in February 2019 by the RANEPA.

In Russia, as of the beginning of 2019, there are 484 credit institutions, last year there were 542. Six years ago, in 2013, there were 1,094 banks in the country. The reduction in the number of banks was due to the policy of the Central Bank of the Russian Federation: over the past 5 years, the regulator has revoked about 400 bank licenses.

In 2014, the policy of the Central Bank was imposed on anti-Russian sanctions, as a result, during each month, licenses from 7 banks were revoked on average in the country; a year earlier, licenses were revoked only from 4-5 banks a month. The most licences were revoked in 2016, with 97. In 2017, this figure was significantly less - only 51 banks lost their license. However, in 2018, the Bank of Russia began to more actively revoke licenses: 60 banks lost them in a year. The total assets of these banks amounted to 562 billion rubles - 0.65% of the total assets of the banking sector.

2018

57 banks' licenses revoked

Map of the constituent entities of Russia by the number of banks

Reduce cashing and other questionable transactions

In June 2019, the Bank of Russia announced that the volume of cashing out money in the banking sector in 2018 amounted to 176 billion rubles, having almost halved compared to 2017. The volume of withdrawal of funds abroad by clients of credit institutions decreased by 1.2 times (from 77 billion to 65 billion rubles), the volume of dubious transit operations - almost twice (from 2.5 trillion to 1.3 trillion rubles).

The Central Bank reports on successes, but it is premature to rejoice, the @ banksta telegram channel noted. They changed the calculation method, pressed banks on and part of the cashing went into trade - markets, bars and car dealerships, the envelope through banks was replaced by buying up currency within the country.

But it's not just that, the shadow market has collapsed along with a stagnating economy and choking private businesses.

2017: All banks divided into institutions with basic and universal licenses

In May 2017, the idea of ​ ​ proportional regulation of the banking sector, actively promoted by the Russian Central Bank, took on a specific shape. The corresponding law, adopted by parliament and signed by the president, divided all banks into two shelves - into institutions with basic and universal licenses.

The main criterion for separation is requirements for the minimum amount of capital. For banks with a basic license, it should range from 300 million rubles to 3 billion rubles; for banks with a universal license - at least 1 billion rubles. Note that after overcoming the threshold of 1 billion rubles, the bank can file a petition for revising the license.

The list of permissible transactions depends on the type of license from this time, and this applies to the base banks. So, they will not be able to open accounts in foreign banks, as well as open subsidiaries or branches abroad. There are a number of restrictions on working with securities.

In exchange, regulatory requirements for banks with a basic license will be simplified: they will still disclose annual and interim financial statements and audit reports, but will not report to the Central Bank of the Russian Federation on the risks taken, procedures for their assessment, risk and capital management. They will also have softer reserve requirements.

The law comes into force on June 1, 2017, and from that day on, all operating banks automatically receive universal licenses. Capital requirements will only apply to newly created credit institutions.

For already operating banks, the criterion for assessing own funds will become relevant from January 1, 2018: banks with a capital of less than 1 billion rubles are given a year in order to capitalize or get a basic license instead of a universal one. As of May 2017, about 300 banks can count on obtaining a universal license, about 240 more credit institutions meet the requirements of the basic license. In general, by January 1, 2019, the transformation of the Russian banking system should be completed.

Changing the status should not affect the work of banks in any way. Banks with a universal license will continue to work as they have worked so far. In the future, it is possible to tighten the rules governing their activities, but the law that comes into force does not contain such norms. Banks with a basic license must also comply with the fundamental standards established by the Central Bank of the Russian Federation. But in relation to them, the main risk is image: now they can be perceived by Russians as second-class financial organizations.

To overcome possible bias against base banks, a number of steps should be taken. First of all, it is necessary to make formal amendments to the legislation, which will say that deposit insurance in the amount of up to 1.4 million rubles applies to both basic and universal banks. This will allow banks with a basic license to remain competitive in the market for attracting funds from the population.

The issues related to the optimization of reporting play an important role. This gives banks with a basic license additional opportunities to reduce costs, which will ultimately allow them to maintain an attractive level of rates. For example, a ban on working with non-residents makes it inappropriate to prepare mandatory reporting according to international standards, "says Oleg Yakushev, an expert at Zerich Capital Management JSC

The possibility of outsourcing the security functions of banking systems will also help reduce costs. Also, issues of interaction of base banks with audit companies and rating agencies are subject to discussion.

In the context of the restructuring of the banking system, the role of information support increases. The Central Bank must convey to all interested parties an obvious idea through the media: the division of banks into basic and universal is not a continuation of the policy of cleaning up the banking sector. On the contrary, this is a targeted work to form a competitive, sustainable cluster of full-fledged credit institutions that will offer high-quality financial services to the population and small and medium-sized businesses.

At the same time, there is a certain risk that the wider financial capabilities of universal banks will lead to an overflow of those customers on whom base banks primarily rely. Unfortunately, today the legislation does not provide for any measures that could level this process. There is no doubt that the new law will cut off those banks that were created specifically to withdraw assets abroad, and will also help small banks stay afloat by reducing the requirements of the Central Bank of the Russian Federation. The formation of the new infrastructure of the banking sector will directly depend on which by-laws will supplement and specify the provisions of the coming into force law.

1911

See also

• Bank guarantees within the framework of public procurement
• Banks in Spain
• Russian economy

Notes