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Banks with foreign capital. Banks with foreign capital in Russia Banks with foreign participation

Most citizens in our country are quite skeptical about the domestic banking system. And if you say in simple words, they do not trust modern commercial Russian banks. This is probably due to the fact that the financial system of our country leaves much to be desired, because in last years our country is in a crisis situation. But foreign companies, on the contrary, attract potential customers, and in Lately are in high demand. Are there foreign banks in Russia? We will consider a list of them below.

Are there foreign organizations in Russia

According to the legislation of our country, it is forbidden to open branches of foreign banks on the territory of the Russian Federation. From this we can conclude that foreign banks in Russia for individuals cannot exist.

However, according to the law of our country, it is not prohibited to open subsidiaries in Russia, the share of the capital of which will belong to non-residents of the Russian Federation. But the nuance is that all financial institutions operating in Russia are required to act strictly according to the law of the Russian Federation and are fully subordinate to the Central Bank of Russia.

Are there foreign banks in Russia? Formally, there are no branches, but there are quite a few a large number of financial institutions that are subsidiaries of foreign organizations.

List of foreign banks in Russia

In fact, there are quite a lot of credit and financial organizations in Russia that were organized as subsidiaries of foreign companies. In total, the list contains about 69 names of commercial organizations operating in Russia, their authorized capital belongs to foreign financial groups. In addition, many of them work exclusively with legal entities, and we will consider only a small list of those that provide services to individuals and occupy high positions in the rating of our country.

UniCredit Bank

This organization began its activities since the days of the Soviet Union, and to be more precise, it began its activities in 1989, at that time it was called the International Moscow Bank. In 2007, it was renamed UniCredit Bank and became one of the most large network banks covering more than 22 countries across Europe. The share of the authorized capital is 100% owned by the UniCredit S.p.A financial group, and its legal address is 00186, Italy, Rome, Via A. Specchi 16, today the bank ranks 12th in the rating.

Interesting! General license of UniCredit-Bank in Russia No. 0001 of the Central Bank of the Russian Federation. And this means that he was the very first to receive a license to carry out financial activities in Russia.

Raiffeisen Bank

The list of European banks in Russia is quite extensive; it also includes one of the largest financial organizations in our country, Raiffeisen Bank. It appeared in our country in 1996, although in fact its history goes back to the middle of the 19th century. The founder of the financial group is Friedrich Wilhelm Raiffeisen. The share of foreign capital is 99.96718%, it belongs to Raiffeisen Zentralbank Osterreich. Registered address Austria, 1030 Vienna, am Stadtpark 9. The Russian subsidiary is headquartered in Moscow. The bank occupies the 13th position in the rating, it specializes in servicing both legal entities and individuals.

Rosbank

Quite well-known in our country, Rosbank is also a subsidiary of the French Financial Group. The share of foreign capital is 99.9508%. The company belongs to the financial group Societe Generale S.A. In our country, the enterprise appeared quite a long time ago, more precisely in 1998, the holding company Interros bought out the bank AKB Nezavisimost, and renamed it Rosbank, in 2006 the blocks of shares were sold in parts to the French financial group and Société Générale. Insofar as more than 99% of the shares are owned by a foreign financial group, it exercises full control over the activities of a Russian commercial bank. In Russia, Rosbank occupies the 14th position in the rating.

Citibank

It is also a fairly large and well-known bank in our country, founded by the largest financial group Citigroup Inc. This financial group was founded in the United States of America in 1812. To date, 100% of the shares belong to this financial group. It received general license number 2557 dated October 5, 2001. Citibank specializes in servicing individuals and legal entities. Citibank currently ranks 21st in the rankings. The headquarters is located in Moscow.

Interesting! The first branch of Citibank in Russia appeared in 1993 and was one of the first financial institutions with foreign capital. Although according to some reports, the name of a financial institution was first mentioned as early as 1917, its branch was opened in two cities of Petrograd and Moscow, but after the October Revolution, all financial institutions were nationalized.

Home Credit Bank

This bank is known in our country as one of the leaders in consumer lending for individuals. It belongs to the international investment financial group PPF registered in Amsterdam, which was founded by the Czech billionaire Petr Kellner. The bank appeared in Russia in 2002. Initially, he specialized in targeted loans issued at retail outlets. In 2002, Home Credit Bank entered into an agreement with the Eldorado retail chain, in 2004 issued the first credit card, and in 2005 opened its own office and issued the first consumer loan. The share of foreign capital is 99.9919%, it belongs to the Home Credit B.V. financial group, which is located in the Kingdom of the Netherlands, the city of Amsterdam.

OTP bank

The financial institution belongs to the Hungarian financial group OTP Group. The share of the authorized capital is 66.1610% owned by the financial group OTP Group, another 31.7078% belongs to Alliance Reserve LLC, 1.2% MFB Invest, less than 1% other shareholders. In Russia, it was registered in 2008, and a year later it took second place in issuing consumer loans, currently it ranks 53rd in the ranking.

Rusfinance-Bank

This Russian commercial bank is not so popular in Russia, it only ranks 63rd in the rating of Russian banks. If we talk about his share of capital, then it is 100% owned by PJSC Rosbank, and, as mentioned earlier, this is a bank with foreign capital that belongs to the French financial group Societe Generale S.A. The main activity of the bank is the issuance of consumer loans, car loans and credit cards, in 2011 the bank took first place in terms of the volume of car loans issued through a network of car dealers. Today it is one of the three largest banks specializing in car loans. It was acquired by the company in 2006, to be more precise, it was created on the basis of Promek-Bank.

Credit Europe Bank

It was created in 2007 on the basis of Finansbank. Today it is one of the largest commercial financial institutions in Russia, which ranks 58th in the rating of Russian commercial banks. The share of foreign capital is 99.99931973%, the shares are owned by the large international financial group FIBA, and its owner is the Turkish billionaire Hyusnu Ozegin.

Deltacredit

This Russian commercial bank, its activity is mortgage lending. It, like PJSC Rosbank, is part of the Societe Generale S.A financial group, it began its activities in our country in 1998 under the name J.P. Morgan-Bank, and in 2005, through reorganization, it was attached to the French financial group. 100% of the shares are owned by PJSC Rosbank.

Subsidiaries of foreign companies in Russia

So, as mentioned earlier, according to the law, there can be no foreign financial organizations in our country. After all, all credit and financial institutions located on the territory of Russia are required to act exclusively within the framework of our legislation and obtain a license from the Central Bank of the Russian Federation. By the way, it should be noted that the list of foreign banks in Russia includes some other large organizations specializing in servicing individuals and legal entities, among them:

Toyota Bank (Japan);
Plus-Bank (Kazakhstan);
Mercedes-Benz-Bank Rus (Germany);
Commerzbank (Eurasia) (Germany);
Volkswagen-Bank Rus (Germany);
Bank of China (China);

Please note that if we talk about the reliability of foreign banks, there are undoubtedly big banks with foreign capital in Russia, but if you look at the rating, then Russian banks such as Sberbank, VTB24, Rosselkhozbank, Gazprombank, Alfa-Bank, Promsvyazbank still occupy the leading positions. As for the "daughters" of foreign enterprises, they are not among the ten most reliable banks in Russia.

To summarize, foreign organizations are working with great success in Russia and are not going to leave the domestic market in the near future. Even despite the fact that the economic and geopolitical situation is rather unstable, the subsidiaries of foreign companies are only strengthening their positions in our market and expanding their branch network.

Banks with foreign participation– foreign credit institutions operating in Russia. There is only one form of such participation - through a subsidiary Russian bank. The Federal Law "On Banks and Banking Activities" does not allow foreign credit institutions to open representative offices and branches in the territory of the Russian Federation.

At the same time, the law requires notifying the Bank of Russia when a foreign legal entity or individual purchases a share in a credit institution from 1% to 10%. And for a larger package, you must obtain permission from the Central Bank.

The arrival of foreign banks in Russia began to gain momentum in the early 2000s, when the economy began to stabilize. In 2003, the share of foreign capital in the Russian banking system was about 5%. By 2006, foreign banks had their interest in 149 credit institutions, while 51 banks were wholly owned by foreigners. The share of foreign capital in the Russian banking system exceeded 11%.

The peak of the expansion of international financial organizations into Russia occurred in the pre-crisis year of 2008, when 28.5% of banks' total equity capital was owned by foreigners. However, the beginning of the international financial crisis led to a general closure of investment projects. At the end of 2010, the share of foreigners in the domestic banking system decreased to 28%, and by the middle of 2011 - to 27%. As of autumn 2011, the assets of credit institutions owned by foreign investors do not exceed 18% of total assets. In total, about 200 organizations with foreign participation have a license to carry out banking operations. 142 of them are located in Moscow, 13 - in St. Petersburg.

Analysts identify two reasons for the decline in the activity of foreign banks in Russia: firstly, the problems of parent credit institutions associated with the crisis in the economy of developed countries, and secondly, fierce competition in the Russian market, primarily with state-owned banks.

Credit organizations such as the Dutch Rabobank Groep NV, one of the world leaders in car loans, Morgan Stanley have left the Russian market altogether. The Scandinavian Swedbank, the British banking group Barclays and the Belgian group KBC announced their intentions to sell their subsidiaries in the Russian Federation. One of the largest European banks, HSBC, abandoned its retail business in Russia, preferring to work with corporate clients.

At the same time, a number of credit institutions with foreign participation are successfully developing their Russian business. The most famous subsidiary banks of foreign financial institutions are Citibank, Raiffeisenbank, UniCredit Bank, OTP Bank, etc.

As a rule, the tariffs and packages of the services they offer roughly correspond to the offers of completely Russian banks.

Since ProfiComment magazine is a blog about money, we decided to pay attention to the topic of banks with foreign capital that are still operating in Russia. Why still? Yes, simply because there have been too many innovations in the financial sector lately. We recently mentioned new US sanctions.

Also, you are probably aware of a series of bankruptcies of the largest Russian banks from the TOP-50. Everyone still has stories with BIN-Bank and Otkritie Corporation on their lips. In this regard, more and more attention is directed to banks with foreign capital, as they are more stable and tend to maintain reliability above all else. Therefore, today we will consider a list of foreign banks operating in Russia.

Full list of banks with foreign capital in Russia for 2019

First of all, let's pay attention to the largest foreign banks that open accounts for Russians. These are financial institutions that have been operating in our country for more than a decade and their reliability is in no way inferior to the largest state-owned banks of the Russian Federation. All these foreign banks operate in Moscow with individuals.

The largest foreign banks in Russia:

UniCredit Bank (Italy)
Raiffeisenbank (Austria)
Rosbank (France)
Deutsche Bank (Germany)
Citibank (USA)
Vostochny Express Bank (international group of investors)
HomeCredit Bank (Czech Republic)
ING Bank (Netherlands)
Credit Europe Bank (Turkey)
OTP bank (Hungary)

The top ten banks that are subsidiaries of foreign financial groups, mainly contains banks from Europe. Historically, it so happened that the territorial proximity and economic ties with continental Europe lead to the penetration of European capital. Therefore, among banks with foreign participation, the vast majority of them are in European countries. Almost all of these foreign banks give loans to Russians. But there are other banks of European financial corporations operating in the Russian Federation.

European banks and NPOs in Russia:

Nordea Bank (Sweden);
DeltaCredit (France);
Rusfinance Bank (France);
HSBC Bank or HSBC Bank (UK);
Bank Intesa (Italy);
BNP Paribas Bank (France);
Credit Agricole CIB (France);
Mercedes-Benz-Bank Rus (Germany);
Commerzbank (Eurasia) (Germany);
Volkswagen-Bank Rus (Germany);
BMW Bank (Germany);
SEB Bank (Sweden);
Danske Bank (Denmark);
Natixis Bank (France);
Bank Credit Suisse (Switzerland);
UBS Bank (Switzerland);
J&T Bank (Slovakia);
Bank PSA Finance RUS (France);
IK Bank (Bulgaria);
CBD Bank (Cyprus);
Global Exchange (Spain).

Under Russian law, the only permitted form of a bank with foreign participation is through a Russian subsidiary credit institution in which the foreign financial institution has a stake (usually 100%). So the largest banks from the USA have branches in Russia.

American banks in Russia:

Morgan Stanley Bank (USA);
Goldman Sachs Bank (USA);
Western Union DP East (USA);
PayPal RU (USA);
American Express Bank (USA);
J.P. Morgan Bank (USA).

Japanese and Korean banks in Russia:

Toyota Bank (Japan);
Bank of Tokyo-Mitsubishi (Japan);
Sumitomo Mitsui (Japan);
Uri Bank (Korea);
Solid Bank (Japan);
KEB HNB Bank (Korea);
MS Bank Rus (Japan);
Mizuho Bank (Japan)

Today in Russia there are the following "daughters" of Chinese banks:

China Construction Bank (China Construction Bank);
Bank of China or Bank of China (Elos);
ICBC - Industrial and Commercial Bank of China or Commercial and Industrial Bank of China;
China Agricultural Bank is a structure of the state bank Agricultural Bank of China.

Another list of banks with foreign capital in Russia:

Mir Business Bank (Iran);
Plus-Bank (Kazakhstan);
Moskommertsbank (Kazakhstan);
MBA-Moscow (Azerbaijan);
Denizbank Moscow (Turkey);
Ishbank (Turkey);
Yapi Credit Bank Moscow (Turkey);
Asia-Invest Bank (Uzbekistan);
Commercial Indo Bank (India);
NBK-Bank (Kazakhstan);
Ziraat Bank (Turkey);
Eurasian Bank (Kazakhstan);
Peyu (South Africa).

According to Russian law, foreign banks in Russia cannot open their branches, but they can have shares in Russian banks. In other words, foreign banks can open subsidiaries in Russia, which are essentially Russian banks, only their founders are wholly or partially foreigners.

Foreign banks in Russia

Such banks operate according to Russian laws:

are checked, submitted and report to the Central Bank of Russia,
make mandatory contributions to the reserve fund.

That is, they are on an equal footing with Russian banks, so it would be more correct to say not foreign banks, but banks with foreign participation.

List of major Russian banks with foreign participation

UniCredit Bank

100% of the shares are owned by UniCredit S.p.A. (Italy)

Key facts about the bank:

The bank was established in the USSR in 1989 on October 19.
Original name - International Moscow Bank.
Became the first Russian bank with foreign capital.
Registration number of the general banking license - 1.
Until October 2016, UniCredit Bank Austria AG was the sole shareholder, now UniCredit S.p.A is a direct participant in the bank.
Included in the list of the Central Bank of the Russian Federation of systemically important banks.
It is the largest Russian bank.

See also: The key rate is reduced by the Bank of Russia to 15%

Rosbank/DeltaCredit/Rusfinance Bank

The banks are part of the Societe Generale group (France).

Rosbank is the largest and systemically important bank in Russia.
DeltaCredit deals only with mortgage loans.
Rusfinance Bank specializes in issuing consumer loans.

Raiffeisenbank

99.96718% owned by Raiffeisen Bank International AG (Austria)

Bank facts:

Raiffeisenbank was established in Russia in 1996, and in 2007 IMPEXBank was merged with it.
Systemically important bank.

Interesting bank products:

Card 110 days from Raiffeisenbank - a long long period, shareware service.

Citibank

100% owned by American Citigroup.

Eastern Bank

51.62% - Evison Holdings Limited (Cyprus), 32.02% - FINVISION HOLDINGS LIMITED (Cyprus).

Home Credit and Finance Bank

It is the leader in retail lending.
It offers an installment card - an analogue of Conscience and Halva, but unlike them, installment is available in any store, and not only in partner stores.

Part of the OTP Group (Hungary).

OTP Bank is interesting as the creator of Touch Bank online bank. Touch Bank has no offices, the service is carried out remotely. Touch Bank operates under the license of OTP Bank.

The most popular product is the Touch Bank debit card with cashback and accrual of income on the balance. The card has two tariffs: Limited with free service and Daily 2.0 with shareware service and advanced functionality.

The bank also offers an online Touch Bank loan and a credit card with very loyal conditions for the borrower.

Setelem Bank

79.2% of the shares belong to Sberbank, 20.8% - to the BNP Paribas S. A group (France)

The bank specializes in consumer lending in retail stores and car dealers.

Credit Europe Bank

99.99931973% of the shares are owned by Credit Europe Bank N.V. (Holland)

These banks are the largest among Russian banks, with a significant share of participation of foreign companies in them.

Foreign banks in Russia inspire the greatest confidence among depositors, after banks with state participation.

Which foreign banks left the Russian market

Today, the share of banks with foreign capital is less than 10% and continues to decline. We list only the most famous cases in chronological order.

2008: Swedish SEB Bank stopped serving individuals;
2010: Spanish Banko Santander sold its Russian subsidiary;
In the same 2010, the American giant Morgan Stanley sold the City Mortgage Bank in Russia
2011: British Barclays left the Russian market, and HSBC curtailed retail operations;
2012: Belgian KBC sold Absolut Bank;
2013: Swiss UBS left only an office for financial advisors in Moscow;
2014: the Russian financial division of General Electric "J Money Bank" is liquidated;
2015: the number of offices of the Swedish Nordea and the Austrian Raiffeisen was sharply reduced, the British RBS (Royal Bank of Scotland) left the market;
In the same 2015: the Dutch sold Forus Bank (losing its license in 2016), Bank of Cyprus got rid of Uniastrum Bank;
2016: Swiss Credit Suisse stopped serving Russian wealthy clients;
2017: several Turkish banks left the Russian market at once;
2018: The German fund DEG sold a stake in RosEvrobank to Sovcombank.

It was not sanctions or anti-Western sentiment that played the main role in leaving business in Russia. main role played by the deterioration of the overall economic prospects of the Russian economy, in particular, the fall in oil prices. Large players remain on the Russian market with a large volume of lending and a wide network of branches. In other words, those who have something to lose. Subsidiary banks that have remained in Russia are doing relatively well and are successfully attracting customers. At the same time, the share of foreign banks in the Russian market is steadily declining. A negative factor for the subsidiaries is the restriction on servicing strategically important public corporations, primarily defensive.

List of foreign banks in Russia

Foreigners are ready to invest substantial amounts in the development of such subsidiaries, often exceeding the authorized capital of the Russian financial institution itself, and, consequently, the confidence in such institutions is higher both among citizens and legal entities.

The citizens of Russia cannot be blamed for this, since everyone strives to keep their honestly earned money and certainly no one is ready to lose it.

When choosing a foreign institution in St. Petersburg and Moscow, one should be very careful and selective, since the fate of the deposit depends on how carefully the analysis of the work of a foreign bank is carried out.

Loopholes in the legislation of Russia allow every year to strengthen on financial market to all new foreign banks, provide huge competition to Russian ones and offer more favorable lending terms and savings programs.

Among the majority of foreign structures in St. Petersburg and Moscow, a small list of banks should be singled out, the most active, gaining more and more popularity among the population.

Banks with foreign participation: list

Place in the ranking	Bank	The country	Place in terms of assets among Russian banks
1	UniCredit Bank	Italy	12
2	Raiffeisenbank	Austria	13
3	Rosbank	France	14
4	Citibank	USA	22
5	Eastern Express Bank	foreign investment funds	31
6	Home Credit	Czech	37
7	Nordea Bank	Sweden	38
8	ING Bank	Netherlands	43
9	DeltaCredit	France	49
10	OTP Bank	Hungary	54
11	Credit Europe Bank	Turkey	59
12	Rusfinance Bank	France	64
13	Center-invest	foreign investment funds	66
14	RN Bank	France, Italy	77
15	HSBC Bank	Great Britain	80
16	Credit Agricole CIB	France	81
17	Intesa Bank	Italy	83
18	BNP Paribas Bank	France	84
19	Deutsche Bank	Germany	85
20	Toyota Bank	Japan	92
21	Mir Business Bank	Iran	99
22	ICBC Bank	China	103
23	Sumitomo Mitsui	Japan	105
24	Commerzbank (Eurasia)	Germany	109
25	Plus Bank	Kazakhstan	110
26	Volkswagen Bank Rus	Germany	115
27	Bank Of China	China	116
28	China Construction	China	130
29	BMW Bank	Germany	133
30	IBA-Moscow	Azerbaijan	142
31	SEB Bank	Sweden	145
32	Mercedes-Benz Bank Rus	Germany	149
33	Moskommertsbank	Kazakhstan	150
34	Danske Bank	Denmark	154
35	Bank Credit Suisse	Switzerland	157
36	J&T Bank	Slovakia	162
37	Natixis Bank	France	164
38	Denizbank Moscow	Turkey	179
39	Ishbank	Turkey	189
40	Uri Bank	Korea	205
41	Solid Bank	Japan	207
42	KEB HNB Bank	Korea	213
43	MS Bank Rus	Japan	217
44	Morgan Stanley Bank	USA	240
45	Yapi Credit Bank Moscow	Turkey	243
46	Asia-Invest Bank	Uzbekistan	250
47	UBS Bank	Switzerland	255
48	Commercial Indo Bank	India	258
49	NBK-Bank	Kazakhstan	267
50	Bank PSA Finance RUS	France	286
51	Goldman Sachs Bank	USA	291
52	Ziraat Bank	Turkey	298
53	ChinaAgriculturalBank	China	302
54	Eurasian Bank	Kazakhstan	312
55	Oney Bank	France, Turkey	365
56	Western Union DP East	USA	371
57	PayPal RU	USA	405
58	American Express Bank	USA	421
59	Ikano Bank	Sweden, Turkey	450
60	IK Bank	Bulgaria	453
61	Moscow Clearing Center	foreign investment funds	463
62	CBD Bank	Cyprus	510
63	Anelik RU	Lebanon	515
64	United Settlement System	France	551
65	Global Exchange	Spain	568
66	Bank of Tokyo-Mitsubishi	Japan	-
67	J.P. Morgan Bank	USA	-
68	Mizuho Bank	Japan	-
69	Peiyu	South Africa	-

List of foreign banks in Russia

Below is a list of the twenty most famous foreign banks in Russia, which have proven themselves well in the domestic market of credit services.

Bank's name	The country	Place in terms of assets among the banking structures of Russia
Unicredit	Italy	12
Rosbank	France	13
Raiffeisenbank	Austria	14
Citibank	USA	23
Home Credit	Czech	38
ING Bank	Netherlands	40
Nordea	Sweden	46
DeltaCredit	France	48
OTP Bank	Hungary	52
Credit Europe Bank	Turkey	58
Rusfinance	France	63
HSBC	Great Britain	72
RN Bank	France, Italy	78
intesa	Italy	85
Deutsche Bank	Germany	87
BNP Paribas	France	88
Toyota	Japan	92
ICBCBank	China	95
MizuhoBank	Japan	103
Credit Agricole CIB	France	105

How can a Russian get a loan from a foreign bank?

If a Russian decided to take out a loan from a foreign bank in the hope of a lower interest rate, then he will be disappointed - the interest rate will not differ significantly from the rate in Russian banks. However, the place in terms of assets among the banking structures of Russia for such companies is many times higher, therefore, having decided to take out a loan in a foreign bank, an individual will not lose in any case.

It is necessary to act according to the standard scheme:

You can also use the standard method of applying for a loan, namely, personally appear at the nearest branch of the company and fill out the proposed application form. When applying for a potential borrower, it is enough to have a passport with you. Further, if approved, he will be invited to the bank again to provide the necessary package of documents (the list of required acts will be issued when filling out the loan form).

Required documents

To get a consumer loan in one of the affiliated international financial organizations, you need to collect a standard package of documents. This list is not much different from a similar package requested from a domestic credit institution. It includes the following documents:

Loan application form;
Passport of a citizen of the Russian Federation;
An act confirming the solvency of the applicant;
Certificate of average earnings from a permanent place of work;
Labor book (copy of all pages).

The above list in each specific organization can be either reduced or supplemented.

Profitable offer

At present, the most reliable foreign companies in Russia are the following banks:

UniCredit (Italy) - provides consumer loans to Russians without collateral and guarantors on the terms:

annual percentage of overpayment - from 13.9%;
loan amount - up to 3 million rubles;
crediting period - 24, 36, 48, 60, 72, 84 months.

Rosbank (France) - Big Money program on standard terms:

interest rate - 14% - 21%;
amount - 300 thousand - 3 million rubles;
maturity 13 months - 5 years.

Raiffeisenbank (Austria) – Personal Loan project:

annual fixed rate - 11.99%;
loan amount - up to 2 million rubles;
for a period of 12 to 60 months.

Citibank (USA) - General Purpose Consumer Loan:

overpayment percentage - from 14% per year;
the largest loan amount is 2.5 million rubles;
repayment period - up to 60 months.

Home Credit (Czech Republic) - "Cash on credit":

interest rate - from 14.9%;
credit amount:
10,000 - 850,000 for the company's clients (owners of deposits, salary accounts),
30,000 - 500,000 - for new consumers;
term of granting – 1 - 7 years.

All of the above loans can be issued in rubles. It is permissible to submit a preliminary application on the official Russian resources of banks.

Quick application form

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Introduction

It is well known that the degree of systemic significance of an institution is determined by the specific weight of its contribution to the level of systemic risk. The following statements have long become axioms:

A bank's increased exposure to sector-wide risk factors increases its systemic importance.
The interaction between different sources of systemic risk increases the systemic importance of a financial institution (for example, of two banks with the same probability of default, the larger one is more significant for the system).

The paper reflects and analyzes selected data of official published statistics on a number of indicators for 2009-2016. (degree of market concentration banking services, structure dynamics).

Analysis of the dynamics of individual indicators of the largest banks G7 plus Russia

The analysis showed that the impact of the international financial crisis had a negative impact on all systemic banks in all countries of the world. Only a few banks managed to maintain their rating positions.

Bank's name	Rating, 2016		Assets, million USD	Asset growth rate, %				Note
Bank's name	Moody's	Fitch	Assets, million USD	2013	2014	2015	2016	Note
Russia
Sberbank of Russia	Ba1 (St)	BBB- (Neg)	417,08	28,2	19,0	33,2	6,8
VTB	Ba1 (St)	BB (Neg)	166,40	3,5	22,4	56,0	13,0
Gazprombank	Ba2(St)	BB (Neg)	90,76	14,5	28,7	30,0	10,2
VTB 24	Ba1 (St)	B(St)	52,21	24,9	38,5	36,5	3,7
Rosselkhozbank	Ba2(St)	BB (Neg)	47,00	14,5	15,4	13,1	22,3
Great Britain
HSBC	AA (St)	BBB (Neg)	2500	-2,3	4,5	0,5	-5,1	5th place*
Barclays	A(St)	BBB (Neg)	1882	-11,1	1,0	-17,5	34,4	12th place*
Royal Bank of Scotland	A(St)	BB (Neg)	1517	-21,7	2,2	24,5	-7,3	20th place*
Lloyds Banking Group	BBB (Neg)	A(St)	1022,2	-9,7	1,5	-5,6	1,4	23rd place *
StandardCharted	A(St)	AA (Neg)	808,37	6,0	7,6	-11,8	1,0	44th place*
France
BNP Paribas	A1 (St)	A+ (St)	2 190	103,28	96,90	116,07	98,90	7th place*
CreditArgicoleGroup	A1 (St)	A (Pos)	1 817	101,12	109,15	115,56	101,54	10th place*
Societe Generale	A2 (St)	A(St)	1454	98,57	105,82	85,75	126,89	19th place*
Creditargicole S.A.	A1 (St)	A (Pos)	1 602	101,91	108,95	115,71	103,68
Calion	A2 (Neg)	A (Pos)	596,0	119,42	110,34	104,24	130,70
USA
JPMorgan Chase	A3(St)	A+(St)	2466	0,886	1,2577	1,0586	0,9505	TOP-15
BankofAmerica	Baa1(Pos)	A(St)	2186	0,8163	1,1562	0,9833	1,0349	TOP-15
Citigroup	Baa1(St)	A(St)	1818	0,875	1,0725	1,0083	0,9842	TOP-15
wellsfargo	A2(Pos)	AA-(Pos)	1890	1,020	1,3542	0,9889	1,111	TOP-15
Japan
Mitsubishi UFJ Financial Group	A1(St)	A(St)	2800	-5%	-10%	11%	8%
Japan Post Bank	A1(St)	A+(St)	2022	8%	14%	25%	-5%	TOP-15
Sumitomo Mitsui Financial Group	A1(St)	A(Neg)	1764	-14%	3%	11%	4%
Mizuho Financial Group	A1(St)	A-(Neg)	1625	-31%	9%	3%	1%	TOP-15
Canada
Royal Bank of Canada (RBC)	A3(Neg)	AA (Neg)	1 180	35,70	80,90	133,40	106,00	TOP 50
Toronto Dominion Bank	Aa1(Neg)	AA-(St)	1 177	50,90	98,50	143,50	73,00	TOP 50
Scotiabank	Aa3 (Neg)	AA-(St)	896,2	75,40	62,10	50,80	39,77
Bank of Montreal (BMO)	Aa3 (Neg)	AA (St)	687,9	11,60	51,62	53,22	46,05
Germany
Deutsche Bank AG	Ba1(St)	A-(St)	1 901	116,85	109,38	109,29	100,02	11th place*
Commerzbank AG	A2 (St)	A-(St)	628,9	110,69	111,77	107,71	100,11	50th place*
DZ Bank AG	Baa3 (Neg)	B(St)	462,3	104,20	97,69	104,31	101,51
Landesbank Baden-Wuerttemberg (LBBW)	Baa2 (Neg)	BB+(Neg)	302,4	106,33	97,48	104,85	102,09
Italy
UniCredit	Baa2 (St)	BBB-(Neg)	982,0	99,19	95,12	104,54	100,02	27th place*
CassaDeposit e Prestiti	Baa2 (Neg)	BB+ (Neg)	461,8	102,82	98,03	105,65	100,13	40th place*
Banca Monte deiPaschi di Siena	B3(Neg)	B-(Neg)	219,6	100,31	100,44	100,95	100,62

* in the TOP-50 Banks of the WorldSt - StableNeg - NegativePos - Positive

The average value of the growth rate of the largest banks' assets over the period under study (2012-2016) varied quite significantly. Only Russian systemic banks showed stable growth at the level of 123.48%. The largest banks in the US, Canada and Japan showed positive dynamics of asset growth, but at a slower pace. So. Wells Fargo & Co (USA) - asset growth 7.93%, U.S. Bancorp (USA) - 5.99%, Royal Bank of Canada (RBC) (Canada) - 9.46%, Bank of Nova Scotia (Scotiabank) - 8.17%, Bank of Nova Scotia (Scotiabank) (Canada) - 5.52%; Oita Bank (Japan) - 10.79%, Nanto Bank (Japan) - 18.63%.

The opposite situation is developing in the banking systems of Great Britain, Germany and Italy. Thus, the increase in assets of UniCredit (Italy) for the specified period amounted to -1.8%, a significant decrease in assets was shown by Banca Popolare di Milano (Italy) - by 20.8%, the leaders in the fall of assets in Germany were Deutsche Bank, Commerzbank and NRW.BANK . The growth outsiders in Great Britain turned out to be Royal Bank of Scotland and Co-operative Financial.

Figure 1 - Dynamics of growth rates of assets of the largest banks G-7 + Russia (%)

Analysis of the development dynamics of Russian systemically important banks

The instability of the general economic and political situation also had an impact on the Russian banking system. It is important to note that the Russian banking services market is characterized by a significant level of concentration. Comparing SIB liabilities with sector indicators, one can see that systemically important banks account for the bulk of debt, which is reflected in Table 2. Thus, the share of systemically important banks accounts for 63.3% of all loans issued (of which the share of two banks - PJSC Sberbank and PJSC VTB accounts for over 50%), including 69.2% of loans to individuals, 61.2% loans to legal entities. At the same time, system banks accumulate 49.9% of all overdue debts of individuals and 43.7% of debts of legal entities. Thus, our banking system is rather three-level: the highest level, of course, belongs to the Central Bank of the Russian Federation, the second is represented by a cartel-like union of two banks with significant state participation (the share of the Central Bank of the Russian Federation (Bank of Russia) in the capital of Sberbank PJSC is 52.32%; the share of the Russian Federation represented by the Federal Agency Rosimuschestvo (Russia) in PJSC VTB is 60.9%) and the third is the other mass of banking and non-banking credit institutions.

Table 2 - Place of systemically important banks in the loan market

Share in the total amount of loans issued to individuals, %	Share in the total amount of loans issued to legal entities, %	Share of debt on loans to individuals, %	Share of debt on corporate loans, %	Share in the total amount of loans issued, %
PJSC "Sberbank of Russia"	40,33	32,03	18,91	12,50	34,11
PJSC VTB	14,86	0,79	11,60	1,64	4,31
JSC Russian Agricultural Bank	2,97	4,38	1,56	9,84	4,03
Bank GPB (JSC)	2,84	9,95	0,83	3,52	8,17
JSC Unicredit	1,110	5,159	3,578	4,899	4,144
JSC Raiffeisenbank	1,72	1,06	0,98	0,76	1,23
PJSC ROSBANK	1,29	0,76	2,51	0,62	0,89
JSC "Alfa-Bank"	2,15	3,49	6,52	5,05	3,15
PJSC Bank FC Otkritie
PJSC Promsvyazbank	0,81	1,93	1,66	3,33

Generally, modern market banking services in various countries of the world in structure represent precisely monopolistic competition with the Lerner index, which varies from 0.2 to 0.4. In terms of the degree of competition, the Russian banking services market is similar to the markets of some countries with economies in transition - Belarus, Hungary, Poland, the markets of the BRICS member countries (with the exception of China, whose market is even more monopolized).

Year	Meaning	Standard deviation
2010	0,3159	0,1274
2011	0,2137	0,1337
2012	0,2285	0,1341
2013	0,3027	0,1405
2014	0,3124	0,1401
2015	0,3167	0,1356
2016	0,3216	0,1489

The high degree of monopolization can be explained by the fact that the marginal costs of medium and small banks are generally higher than the marginal costs of large banks, which in turn is explained by the lower cost of external funding available to lending banks, as well as a lower reserve ratio. If we take into account the fact that the prices for banking products at large banks are lower than those of small and medium-sized ones (by about 2 percentage points), it becomes clear that more reliable borrowers naturally go for loans to large banks, due to which in the latter also have a lower level of risk.

And it is these banks that account for the bulk of issued and attracted loans in the interbank market (Fig. 2).

Figure 2 - Dynamics of attracted and issued interbank loans in 2009-2016

In addition, two more specific features containing systemic risk can be distinguished:

1) significant segmentation of the market. A significant part of transactions in the interbank market is carried out between banks related to each other by common business interests, however, this is what becomes a catalyst accelerating the development of negative phenomena in case of problems (interbank loans are provided only to a limited group of counterparties, for other credit institutions this source of financing becomes unavailable );

2) the largest Russian banks are borrowers on the world market. On the one hand, this gives them new sources of capital, on the other hand, it creates dependence on such sources of financing and thereby increases the vulnerability of the Russian banking sector to the impact of global economic shocks, which was observed in 2008 and in 2014-2015.

Comparing SIB liabilities with sector indicators, one can see that systemically important banks account for the bulk of term and current customer funds, which is reflected in Fig. 3.

Figure 3 - Dynamics of urgent and current funds in 2009-2016, thousand rubles

The absolute value of the capital of SIBs is growing, but at the same time the share of capital in banks' assets is declining, as the placement of funds occurs at a faster pace, which increases the risks in the sector. At the same time, the total capital adequacy ratio for the banking sector as a whole decreased over the year and has a downward trend, the reason for which is the outstripping growth of risk-weighted assets.

Conclusion

The analysis carried out allows us to draw the following conclusions:

There are significant structural differences in the markets for credit and individuals and legal entities;
These structural differences are increasingly separating systemic banks from other banks
There has also been a trend of differentiation in the group of systemic banks themselves, which essentially leads to the formation of a three-tier banking system: the Central Bank, as a mega-regulator; Sberbank as a mega-creditor and many other banks.
The high level of concentration in the banking market will undoubtedly enhance the introduction of universal and basic banking licenses

Bibliographic list:

Kartuesov A., Onukhov A., Doronkin M. Lending to small and medium-sized businesses in Russia: competition intensifies. URL: http://raexpert.ru/docbank/700/63f/d16/c211fae4b8a08dca04148c0.pdf

Lebedinskaya O.G., Timofeev A.G. Systemic importance of the bank: some questions of methodology // Management of economic systems: electronic Science Magazine. 2016. No. 3 (85). P. 10.

Lebedinskaya O.G., Timofeev A.G. Methodological aspects of determining the systemic significance of a bank // Education. The science. Scientific personnel. 2016. No. 2. S. 118-119.

Bank of Russia Ordinance No. 3737-U, dated July 22, 2015, “On the Methodology for Determining Systemically Important Credit Institutions.”

Kartuesov A., Onuhov A., Doronkin M. Crediting of small and medium business in Russia: the competition is exacerbated . URL: http://raexpert.ru/docbank/700/63f/d16/c211fae4b8a08dca04148c0.pdf

Lebedinskaja O.G., Timofeev A.G. System significance of the bank: some issues of methodology // Management of economic systems: an electronic scientific journal. 2016. No. 3 (85). C. 10.

Lebedinskaja O.G., Timofeev A.G. Methodological aspects of determining the bank's system significance // Education. The science. scientific staff. 2016. No. 2. P. 118-119.

Instruction of the Bank of Russia of July 22, 2015 3737-U "On the methodology for determining systematically important credit institutions".

Foreign banks in Russia manage to work more efficiently than Russian credit institutions. The profitability of foreign banks is higher than that of domestic ones. This is largely due to the more stringent policy of controlling the bank's expenses. Also, many subsidiary banks can be fed from the main bank, which allows them to work more steadily in the banking market.

This state of affairs does not suit the state. Therefore, in order to maintain and develop the Russian banking system, a bill was submitted to the government to ban the opening of representative offices of foreign banking organizations in Russia. The adoption of such a bill may reduce the inflow of foreign investment in the banking sector. Let us consider foreign banks with 100% participation of foreign capital, which are prominent representatives in the Russian banking market.

Foreign banks and representative offices in Russia with the participation of foreign capital

Yapi Credit Bank Moscow is considered one of the oldest foreign banks in the country. It is 99.843% owned by the main bank in Turkey. Its history begins in 1988, when the Turkish bank opened its representative office in Moscow. Since 1993, the bank has been among the twelve banks that have received a license for banking activities in Russia. It has firmly taken its place in the banking system of Russia and still offers many services in the banking sector, both to corporate clients and individuals. It was not affected by the 1998 crisis; rather, on the contrary, the bank acted as reliable partner on financing, which only strengthened its position in the market.

Deutsche Bank is one of the largest banks in Germany. In Russia it has its representative office in Moscow. Deutsche Bank owns a 40% stake in ZAO OFG Invest. However, it does not provide services to private clients, except for the management of large capitals. The main area of activity is the provision of banking services to corporate clients and the management of large capitals. At the same time, in addition to all banking services, individual consulting is carried out.

Since 2004, a representative office of GE Money Bank has been operating in Russia. The bank provides consumer lending services. Entering the Russian deposit insurance system, the bank meets all the requirements of the Central Bank of Russia. Combining modern foreign instruments and Russian realities, the bank is attractive to consumers not only with its offers, but also with great popularity all over the world.

The most popular banks with 100% foreign capital

Raiffeisen Bank is one of the representatives with 100% participation of foreign capital. It is a subsidiary of the Austrian banking group Raiffeisen. The bank has been operating in Russia since 1996 and provides a full range of services to corporate and private clients, both in foreign currency and in Russian rubles. In 2006, the Austrian Raiffeisen Group acquired one hundred percent of the shares of OAO IMPEXBANK. Today Raiffeisen Bank is one of the most reliable banks in the country. This is confirmed by many factors, for example, the bank has been assigned a high credit rating and reliability rating.

UniCredit Bank has been offering its services on the Russian market since 1989 with 100% participation of foreign capital represented by the shareholder of the Austrian bank UniCredit Bank Austria AG. It is one of the leaders in the domestic market of banking services. Offers customers a wide range of banking services. Serves private and corporate clients. Attracts clients with an individual and respectful approach, as well as high-quality services.

Societe Generale Bank is a 100% foreign bank represented by the main shareholder of the Societe Generale group. It occupies a strong position in the Russian market. It was founded in 1993, and today it has offices in eleven regions of the country. The Bank offers potential customers a wide range of banking offers and services. Serves both private and corporate clients. The bank offers bank cards for salary transfer, as well as business cards to simplify payments abroad and in Russia. Also offered different types loans for private clients and financing programs for corporate clients. The Bank has various awards and titles received in different years for the quality of its services. The Bank has a strong position in the Russian market, offering its customers quality services. Bank representative offices are open in Nizhny Novgorod, Moscow, Ufa, St. Petersburg, Yekaterinburg and in a number of other large Russian cities.

Which bank to choose

Having decided to use a banking service, the question arises of choosing a bank. Many private clients do not have a question about which bank it is, Russian or foreign. The study of offers and conditions of service comes first. As a rule, Russian banks are more adapted to the realities of the domestic market, but at the same time, they can offer fewer banking services, while representative offices of foreign banks, relying on the support of the head bank and its experience, can offer more quality services. When choosing between foreign and domestic banks, it should be remembered that most domestic banks operate in limited regions, which reduces consumer opportunities when traveling around the country and even more so outside it.

When choosing a foreign bank, one should study not only its history of activity in Russia, but also the history of the main bank located abroad. This will help to form an objective opinion about the quality of the services offered and the reliability of the bank. Valuing their reputation, foreign banks very carefully control the activities of their representative offices in Russia. At the same time, the level of services offered to customers must correspond to the level of a foreign bank. All this leads to the provision of better services. Thus, foreign banks are trying to attract customers and keep them, trying to consolidate their positions in the market. However, it must be remembered that by choosing a foreign bank, you give away your money, which begins to work for a foreign country.

Such banks operate according to Russian laws:

are checked, submitted and report to the Central Bank of Russia,
make mandatory contributions to the reserve fund.

That is, they are on an equal footing with Russian banks, so it would be more correct to say not foreign banks, but banks with foreign participation.

List of major Russian banks with foreign participation

UniCredit Bank

100% of the shares are owned by UniCredit S.p.A. (Italy)

Key facts about the bank:

The bank was established in the USSR in 1989 on October 19.
The original name is International Moscow Bank.
Became the first Russian bank with foreign capital.
Registration number of the general banking license - 1.
Until October 2016, UniCredit Bank Austria AG was the sole shareholder, now UniCredit S.p.A is a direct participant in the bank.
Included in the list of the Central Bank of the Russian Federation of systemically important banks.
It is the largest Russian bank.

Rosbank/DeltaCredit/Rusfinance Bank

The banks are part of the Societe Generale group (France).

Rosbank is the largest and systemically important bank in Russia.
DeltaCredit deals only with mortgage loans.
Rusfinance Bank specializes in issuing consumer loans.

Raiffeisenbank

99.96718% owned by Raiffeisen Bank International AG (Austria)

Bank facts:

Raiffeisenbank was established in Russia in 1996, and in 2007 IMPEXBank was merged with it.

Systemically important bank.

Interesting bank products:

- a long long period, shareware service.

Citibank

100% belong American Citigroup.

Eastern Bank

51.62% - Evison Holdings Limited (Cyprus), 32.02% - FINVISION HOLDINGS LIMITED (Cyprus).

Home Credit and Finance Bank

It is the leader in retail lending.

Offers - an analogue of Conscience and Halva, but unlike them, installments are available in any store, and not only in partner stores.

OTP Bank

Part of the OTP Group (Hungary).

OTP Bank is interesting as the creator of Touch Bank online bank. Touch Bank has no offices, the service is carried out remotely. Touch Bank operates under the license of OTP Bank.

The most popular product is with cashback and accrual of income on the balance. The card has two tariffs: Limited with free service and Daily 2.0 with shareware service and advanced functionality.

The bank also offers a credit card with very loyal conditions for the borrower.

Setelem Bank

79.2% of the shares belong to Sberbank, 20.8% - to the BNP Paribas S. A group (France)

The bank specializes in consumer lending in retail stores and car dealers.

Credit Europe Bank

99.99931973% of the shares are owned by Credit Europe Bank N.V. (Holland)

These banks are the largest among Russian banks, with a significant share of participation of foreign companies in them.

Foreign banks in Russia inspire the greatest confidence among depositors, after.

Nina Polonskaya