The material on this site is for financial institutions, professional investors and their professional advisers. It is for information only. Please read our Terms & Conditions, Privacy Policy and Cookies before using this site.

All material subject to strictly enforced copyright laws. © 2020 Euromoney, a part of the Euromoney Institutional Investor PLC.
Opinion

Russia's crimes against banking

The state has done a lot of damage.

handprint-crime-780

In most assessments of the wrongdoings of the current Russian government, crimes against banking would be fairly far down the page.

Nevertheless, the determination of president Vladimir Putin's people to treat Russia's biggest banks as their political playthings is worthy of mention. Not only has it already done considerable damage to the sector, it is potentially sowing the seeds of worse to come.

This might seem a harsh judgement. After all, it was Putin who installed Elvira Nabiullina at the central bank in 2013 with a mandate to clean up the banking sector, a task she and her team have pursued with enthusiasm. In five years, more than a third of Russia's 900 or so banks have been closed.

Yet equally it was Russia's rulers who sponsored the reckless expansion of three of the country's biggest private-sector banks after 2014. Otkritie, B&N Bank and Promsvyazbank (PSB) were given lavish funding to take over troubled lenders, as well as tacit permission to embark on debt-fuelled shopping sprees. 


Take out a complimentary trial

Take out a 7 day trial to gain unlimited access to Euromoney.com and Asiamoney.com analysis and receive expertly-curated updates direct to your inbox.

 

Already a user?

Login now

 

We use cookies to provide a personalized site experience.
By continuing to use & browse the site you agree to our Privacy Policy.
I agree