Source Pravda.Ru

Russian Banks Have Profit Margin of Only 2%

The profit margins of Russian banks today stand at only 2%, which is 10-15 times lower than rates in the manufacturing and retail sectors. This was announced by Gagerin Tosunyan, the president of the Association of Russian Banks (ARB), at the round-table conference 'On government policy regarding development of the Russian banking system.'

The ARB president believes that it is not possible to improve the performance of commercial banks in Russia without resolving the problems of covering banking risks and attracting resources for long-term loans. The compulsory reserve fund currently absorbs between 7% and 10% of bank funds, which, according to Tosunyan, 'is an unjustifiably high proportion. In Europe this figure is only 2%.'

According to the ARB's figures, Russian banks held 190 billion roubles (USD 6.03 billion) in the compulsory reserve fund at the end of 2002, and 100 billion roubles (USD 3.2 billion) in correspondent accounts. 'If the compulsory reserve fund and correspondent accounts were merged, this would free up to 150 billion roubles (USD 4.76 billion) a year, which could be redirected in order to provide loans to the real sector of the economy,' explained Tosunyan.

Speaking at the round-table session, Anton Siluanov, the head of the Russian Finance Ministry's Department for Macroeconomic Policy and the Banking Sector, announced the government's plans to draw up a strategy for developing the banking sector in Russia in the medium term. According to Siluanov, the strategy will include a range of measures to improve legislation on the bankruptcy of credit organisations and reducing the state's share of banking capital.

The discovery of the submarine has unveiled a few "inconsistencies." For example, how can one explain the fact that the sub was found where it needed to be searched for from the start?

Argentina hides the truth about the death of San Juan submarine
Comments
Third Rome and geopolitics of Orthodox schism
Five years after Maidan revolution, Ukraine remains one of Europe's most corrupt states
The Amazon and the New Conquistadores
Brexit: The UK's misunderstanding of Democracy
The Amazon and the New Conquistadores
The Amazon and the New Conquistadores
Kuril Islands dispute between Russia and Japan: The impossible is impossible
Kuril Islands dispute between Russia and Japan: The impossible is impossible
Kuril Islands dispute between Russia and Japan: The impossible is impossible
Russia to raise sunken floating dock
Unemployment in Russia hits record high of 15 percent
Third Rome and geopolitics of Orthodox schism
Brexit: The UK's misunderstanding of Democracy
Why Trump tries to re-industrialize America
Why Trump tries to re-industrialize America
MP suggests replacing Lenin's mummy with rubber figure
Russian Navy admiral says Russia will torpedo US warships, if need be
The horror story called Brazil: Murder and destruction
Russia close to recognising Donetsk and Luhansk republics after Donbass elections
Five years after Maidan revolution, Ukraine remains one of Europe's most corrupt states
Why Trump tries to re-industrialize America