Headline: Oligarchs still in the driving seat Source: Euromoney Date: September 2001 Author: Ben Aris Russia has done little to reform a banking sector that is still littered with hundreds of thinly capitalized and barely functioning institutions. But there are some signs of improvement. A stronger economy has made it more attractive for the larger commercial banks to start lending to Russian companies. It’s a new game for them.
With more money in the economy, and production and sales growing strongly, the leading commercial banks have been capitalizing on their head start and are pulling ahead of the field. By the start of this year the total assets and capital of Russia’s banks had recovered to 80% and 67% of pre-crisis levels respectively, with the top 300-odd banks doubling their capital over the same period. |