Foreigners Control 20% Of Capital Of Russian Banks
The share of foreign investors in the overall capital of Russian banks exceeded the 20% mark. Further growth is inevitable, but it does not present a threat, according to the Central Bank and the Ministry of Finance.
The share of foreign capital in the total registered charter capital of Russian credit institutions as of July 1, 2007 had grown to 21.3% compared with 18.3% on April 1, 2007 – according to the Central Bank. This growth was led by capital expansion of six banks controlled by non-residents, creation of two new credit institutions with 100% foreign capital, and the transfer of eight banks to foreign control. It also takes into account that in the placing of Sberbank’s (Savings Bank of the Russian Federation) shares, some of the stock was purchased by foreign investors. According to the results of the share placement, the share of foreign investors in Sberbank’s capital amounts to 21%.
If only a year ago foreigners tried to enter the banking business gradually, by purchasing small shares and electing their representatives for management bodies, now they are ready to purchase controlling interest all at once. However, the Central Bank and Ministry of Finances do not see a threat for sovereignty in banking sector, and according to the head of the Ministry of Finances the foreigners’ share will not exceed a third within the next 5-7 years.
Foreigners in Russia are not welcomed with open arms, the chairman of the board of Deutsche Bank admitted recently. According to him, foreigners meet many obstacles if they purchase over 20% of a Russian bank’s capital.
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| ||Source: Klerk.ru|| |