Main article: Banks in Russia
2024
The Central Bank of the Russian Federation approved the requirements for cybersecurity of branches of foreign banks. They will have to do a regular audit
The Central Bank of Russia in October 2024 published a project establishing new requirements for cybersecurity of branches of foreign banks operating in the country. The document provides for the mandatory regular audit of security systems and operational reliability.
According to Frank Media, the document contains clarifications and new provisions regarding the operational reliability of systems in banking activities. The main goal of the innovations is to ensure the continuity of banking services and increase the level of cybersecurity.
According to the new requirements, branches of foreign banks will be required to analyze the need to revise the values of control indicators of operational reliability of banking systems at least once a year. This will allow timely identification of potential vulnerabilities and take measures to eliminate them.
One of the key provisions of the document is the ban on attracting foreign persons and transferring data outside Russia when using cash processing equipment approved by the regulator. This measure is aimed at ensuring the safety and confidentiality of information processed in the country.
The Bank of Russia has also set a timeframe for eliminating process-related failures. Depending on the size of the branch, it takes two to six hours to troubleshoot. The exception is processes related to ensuring the execution of transactions in financial markets, for which up to 24 hours are allocated.
The new cybersecurity requirements apply to all branches of foreign banks operating in Russia, regardless of their size and volume of operations. It is expected that these measures will increase the resilience of the country's banking system to cyber threats and ensure more reliable protection of customer data.[1]
Foreign banks allowed to open branches in Russia
On August 8, 2024, the president Russia Vladimir Putin signed a law allowing foreign banks to open branches in the Russian Federation. This law, which comes into force on September 1, 2024, is aimed at developing a system of international settlements and attracting foreign investment.
The law provides foreign banks with the opportunity to open one branch in Russia. However, such branches will operate with certain restrictions. In particular, they are prohibited from opening internal structural divisions and involving bank payment agents. Branches will be able to conduct professional activities in the securities market, with the exception of trust management. When performing banking operations and transactions, rights and obligations will arise directly from the head bank.
As the head of the State Duma Committee on the Financial Market Anatoly Aksakov explained, legislators expect primarily to attract banks from friendly countries, although the restrictions for unfriendly states are not spelled out in the document. This creates conditions for active interaction with international financial institutions that support cooperation with Russia.
To open a branch, a foreign bank must meet a number of criteria established by the Central Bank of Russia. In particular, a credit institution should conduct banking activities for at least three years and have a high rating level that will allow it to work on the Russian market. In addition, to ensure the obligations of the branch, it will be necessary to place a guarantee deposit in the amount of at least ₽1 billion.
Branches of foreign banks in Russia will receive the right to conduct a number of operations, such as collection, purchase and sale of currency, money transfers, rent safes and special offices, as well as the opening and maintenance of accounts of legal entities. However, for individuals, including individual entrepreneurs, opportunities will be limited: branches will be able to conduct operations only for the purchase and sale of foreign currency and transfers without opening accounts.[2]
Closing of Bank of Cyprus offices in Moscow and St. Petersburg
In January 2024, Bank of Cyprus closed its representative offices in Moscow and St. Petersburg. "From Monday, January 22, the accreditation of Bank of Cyprus representative offices in Russia has been terminated: in Moscow and St. Petersburg," the Central Bank of the Russian Federation said.
2023
Payment of 800 million euros in taxes in Russia against the background of high profits of European banks
European banks in Russia paid 800 million euros in taxes to the country's budget in 2023.
This figure is four times higher than the level before the outbreak of the conflict in Ukraine, and this comes amid a jump in the profits of European creditors who are successfully continuing to work in Russia.
Western banks lose market share in Russia due to sanctions of their governments
The share of Western banks in the volume of operations Russia in decreases to the level last observed before the collapse of the Soviet Union, since illegal sanctions limit their own business and they give way to Chinese creditors, benefiting from the growth of the share of trade expressed in yuan.
By December 2023, after the failure of Russia's containment policy, these losses began to worry the banks of Western countries.
Most Western banks have cut staff in Russia. In addition to Raiffeisen Bank
Chinese banks have significantly increased operations with banks in Russia
On July 12, 2023, it became known about a sharp increase in the business of Chinese banks in Russia. These credit organizations, according to RBC, have become important suppliers of yuan liquidity to the Russian money market.
The publication of the publication says that from February 1, 2022 to June 1, 2023, the "daughters" of banks from the PRC increased lending to Russian organizations several times. Thus, Bank of China increased the issuance of loans to other banks by 7.7 times (plus 107 billion rubles). Over the same period, China Construction Bank increased the volume of loans issued almost six times (plus 15.9 billion rubles) to iCsBiSi - 3.3 times (plus 9.7 billion rubles). In total, over the year, the share of the largest subsidiaries of Chinese banks in the segment of interbank loans increased from 0.7 to 3.3%.
By June 1, 2023, the listed subsidiaries of Chinese banks on their balance sheets in total held interbank loans of only 133.9 billion rubles - 3.3% of the total. As of February 1, 2022, this share was 0.7%.
Strengthening their positions on the interbank market is a "natural process" associated with the devaluation of the market - the reduction banks of assets and liabilities in euros and dollars due to sanctions, explained in. Absolut Banke
Yuri Belikov, Managing Director for Validation of the Expert RA agency, is also inclined to believe that banks with Chinese roots were increasing the volume of operations not on the domestic market.
 | Historically, their counterparty policies have not been designed to deal with the entire open market. Their interbank operations are concentrated on the head structures, the analyst said. |  |
Banks with Chinese roots are "too conservative" and their parent structures have "too strong fears of secondary sanctions," he added. The interbank supply channel for yuan is not significant, a representative of the Central Bank of the Russian Federation told RBC. According to the regulator, as of June 1, 2023, the share of such loans in the total portfolio of interbank loans was less than 1%, or about 130 billion rubles.[3]
2022
The number of foreign banks in Russia for the year decreased from 115 to 108
The number of foreign banks in Russia decreased to 108 from 115 in 2022.
The total profit of foreign banks in the Russian Federation turned out to be the most profit of the entire sector
Foreign credit organizations operating in the Russian banking sector received the largest profit in 2022 - 211.5 billion rubles. This corresponds to 104% of the total profit of the entire banking sector in the Russian Federation for the same 12-month period of time (203.2 billion rubles). The Kommersant newspaper drew attention to this, the corresponding article was published on March 31, 2023.
Raiffeisen Bank became the record holder. The organization's net profit amounted to 141 billion rubles. In second place was Unicredit Bank (57 billion rubles). Other foreign banks have several times less profitability, but compared to previous years, the profit of a number of organizations has grown at a record pace.
At the same time, the loan portfolios of foreign banks decreased over the year. Analysts explain the situation by curtailing the business of foreign companies in Russia.
| | In addition, the operations of such banks often included servicing international companies, and since foreign business left Russia in 2022, the volume of portfolios decreased due to the repayment of loans, "said banking expert Olga Ulyanova. | |
According to Mikhail Matovnikov, head of the Sberbank financial analytics center, the profit structure of foreign banks cannot be called uniform - some retail banks have low profitability, and some large and universal banks have a radical increase in currency margin in 2022.
Against the background of a reduction in the loan portfolio, foreign banks increased the amount of funds raised, primarily from corporate clients. According to the estimates of the Central Bank, at the beginning of 2023, under the direct or indirect control of foreign citizens in Russia, there were 65 banks - the ultimate owners of organizations, non-residents, have the right to dispose of more than 50% of the vote. In general, 108 banks operate in the country with the participation of non-residents in the capital.[4]
Putin approved a list of banks that are prohibited from making transactions with shares of foreigners
Vladimir Putin approved a list of 45 Russian banks in which transactions with shares of foreigners from unfriendly countries cannot be made. The corresponding order of the chapter at the end of October 2022 was published on the official portal of legal information.
The list includes systemically significant Raiffeisen Bank and "" Unicredit Bank- "daughters" of the Austrian Raiffeisen Bank International (RBI) and the Italian UniCredit, as well as included in the top 30, Citibank owned by the American Citigroup. The full list is available here.
The list of banks was approved within the framework of the Decree of the President of the Russian Federation of August 5, 2022 No. 520 "On the application of special economic measures in the financial and fuel and energy spheres in connection with the unfriendly actions of some foreign states and international organizations." This decree directly prohibits non-residents from countries unfriendly to Russia from leaving assets at least until the end of 2022 (the ban may be "repeatedly" extended). An exception for the transaction can be made if a special permission of the president is obtained for its implementation.
The approved list of credit institutions fixes the status quo introduced by the presidential decree in August, Sergei Glandin, a lawyer and partner of the NSP law firm, told Vedomosti: banks from the list will no longer be able to sell their Russian business, that is, they will not be able to leave Russia. But at the same time, the order does not prevent the liquidation of a credit institution on a general basis, the expert adds: the bank can still pass the license and simply stop operating in Russia.
In April 2022, a bill was registered in the State Duma providing for the possibility of introducing external management in foreign companies that announced their departure from the Russian market. As of October 26, 2022, the bill passed only the first reading.
Since the beginning of the year, six representative offices of foreign banks in Russia have been closed
Foreign banks are cutting representative offices in Russia amid the conflict in Ukraine: since the beginning of 2022, six of them have been closed by the end of October, and three in October.
As of October 2022, in Russia, according to Frank Media, 32 divisions of foreign banks officially operate against 65 - at the beginning of 2016.
Among the banks that closed the work of representative offices in 2022, the Cypriot RCB Bank (Russian Commercial Bank) with Russian roots, which received accreditation back in 2005, lasted the longest. Until November 2014, it was controlled by the Russian VTB, subsequently the state bank reduced its stake to 46.29% of the shares, from 2014 to 2017 the 19.8% stake belonged to Otkritie Bank.
Also, the representative offices were closed by the German Bayerische Landesbank, the Italian Iccrea BancaImpresa S.p.A., one of the oldest private Swiss banks Lombard Odier, the Cypriot Hellenic Bank and the Japanese Hokkaido Bank. The last two left one representation each.
2018: List of foreign banks by assets
UniCredit Bank: country - Italy, net assets by 01.10.2018 - 1 274 185 218 rubles;
Raiffeisen Bank: country - Austria, net assets per 01.10.2018 - 1 050 108 702 rubles;
Rosbank: country - France, net assets by 01.10.2018 - 1 014 179 480 rubles;
Citibank: country - USA, net assets by 01.10.2018 - 542 467 506 rubles;
Vostochny Express Bank: net assets of 01.10.2018 - 313 470 036 rubles;
Home Credit: country - Czech Republic, net assets of 01.10.2018 - 265 878 889 rubles;
DeltaCredit: country - France, net assets by 01.10.2018 - 194 837 070 rubles;
ING Bank: country - Netherlands, net assets by 01.10.2018 - 192 142 228 rubles;
OTP Bank: country - Hungary, net assets per 01.10.2018 - 158 398 952 rubles;
Nordea Bank: country - Sweden, net assets by 01.10.2018 - 142 488 366 rubles;
Credit Europe Bank: country - Turkey, net assets by 01.10.2018 - 141 286 788 rubles;
Rusfinance Bank: country - France, net assets per 01.10.2018 - 129 024 143 rubles;
Center-invest: net assets by 01.10.2018 - 116 492 111 rubles;
HEC Bank: UK, net assets by 01.10.2018 - RUB 90,211,381;
RN Bank: country - France, Italy, net assets by 01.10.2018 - RUB 87,184,708;
Mizuho Bank: country - Japan, net assets by 01.10.2018 - 85 670 629 rubles;
Sumitomo Mitsui: country - Japan, net assets by 01.10.2018 - 80,576,825 rubles;
Deutsche Bank: country - Germany, net assets by 01.10.2018 - 75,388,095 rubles;
Toyota Bank: country - Japan, net assets by 01.10.2018 - 69,505,954 rubles;
Bank of Tokyo-Mitsubishi: country - Japan, net assets per 01.10.2018 - 62,945,136 rubles;
Bank: China, net assets as of 01.10.2018 - RUB 62,314,675;
Commerzbank (Eurasia): country - Germany, net assets by 01.10.2018 - 60,789,550 rubles;
Bank Credit Suisse: country - Switzerland, net assets as of 01.10.2018 - 60,029,578 rubles;
Bank Intesa: country - Italy, net assets as of 01.10.2018 - RUB 59,468,006;
BNP Paribas Bank: country - France, net assets as of 01.10.2018 - RUB 52,282,983;
SEB Bank: country - Sweden, net assets by 01.10.2018 - 51,458,335 rubles;
Danske Bank: country - Denmark, net assets by 01.10.2018 - 49,046,381 rubles;
Credit Agricol CIB: country - France, net assets of 01.10.2018,-,42,221,508 rubles;
World Business Bank: country - Iran, net assets by 01.10.2018 - 40,974,186 rubles;
Volkswagen Bank Rus: country - Germany, net assets by 01.10.2018 - 38,928,339 rubles;
BMW Bank: country - Germany, net assets of 01.10.2018,-,36,235,902 rubles;
J.P. Morgan Bank: country - USA, net assets by 01.10.2018 - 35,826,315 rubles;
Plus Bank: Kazakhstan, net assets by 01.10.2018 - RUB 35,425,529;
Bank of China: country - China, net assets by 01.10.2018 - 34,740,364 rubles;
Mercedes-Benz Bank Rus: country - Germany, net assets by 01.10.2018 - 26,645,150 rubles;
Moskommertsbank: country - Kazakhstan, net assets per 01.10.2018 - 26,191,756 rubles;
Natixis Bank: country - France, net assets as of 01.10.2018 - RUB 25,947,589;
China Construction: country - China, net assets by 01.10.2018 - 24,345,657 rubles;
Denizbank Moscow: country - Turkey, net assets by 01.10.2018 - 20,910,794 rubles;
MS Bank Rus: country - Japan, net assets as of 01.10.2018 - 20,907,916 rubles;
J&T Bank: country - Slovakia, net assets as of 01.10.2018 - 18,587,283 rubles;
Uri Bank: country - Korea, net assets as of 01.10.2018 - RUB 17,217,116;
Ishbank: country - Turkey, net assets by 01.10.2018 - 14,012,798 rubles;
EHB Bank: country - Korea, net assets as of 01.10.2018 - RUB 13,929,814;
MBA-Moscow: country - Azerbaijan, net assets by 01.10.2018 - 11,974,580 rubles;
Solid Bank: Japan, net assets as of 01.10.2018 - RUB 11,742,955;
Asia-Invest Bank: country - Uzbekistan, net assets by 01.10.2018 - 10,377,348 rubles;
Yu Bi Es Bank: country - Switzerland, net assets as of 01.10.2018 - 8,572,232 rubles;
Morgan Stanley Bank: country - USA, net assets by 01.10.2018 - 8,506,235 rubles;
China Agricultural Bank: country - China, net assets by 01.10.2018 - 6,989,589 rubles;
Ziraat Bank: Turkey, net assets as of 01.10.2018 - RUB 6,970,242;
Goldman Sachs Bank: United States, net assets as of 01.10.2018 - RUB 6,235,751;
PSA Bank Finance RUS: country - France, net assets by 01.10.2018 - 5,349,740 rubles;
Commercial Indo Bank: country - India, net assets by 01.10.2018 - 5,155,253 rubles;
Icano Bank: country - Sweden, Turkey, net assets by 01.10.2018 - 4,417,823 rubles;
Eurasian Bank: Kazakhstan, net assets as of 01.10.2018 - RUB 3,611,543;
PayPal RU: country - USA, net assets by 01.10.2018 - 3,337,696 rubles;
Western Union DP East: country - USA, net assets by 01.10.2018 - 3,132,208 rubles;
US Express Bank: United States, net assets as of 01.10.2018 - RUB 2,601,990;
Oney Bank: country - France, Turkey, net assets by 01.10.2018 - 2,400,880 rubles;
IK Bank: country - Bulgaria, net assets by 01.10.2018 - 2,291,412 rubles;
Moscow Clearing Center: net assets by 01.10.2018 - 1,087,148 rubles;
CBI Bank: country - Cyprus, net assets by 01.10.2018 - 507,466 rubles;
Combined settlement system: country - France, net assets by 01.10.2018 - 313,631 rubles;
PayU: country - South Africa, net assets as of 01.10.2018 - 258,203 rubles;
Global Exchange: country - Spain, net assets by 01.10.2018 - 210,051 rubles.
See also
Notes
- ↑ Central Bank posted draft technical requirements for branches of foreign banks
- ↑ Foreign banks allowed to open branches in Russia
- ↑ Chinese subsidiaries in Russia during the crisis sharply increased lending to banks Their share in this market has grown almost fivefold
- ↑ Enrichment of non-residents
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