Number of small and medium sized banks decreases in Russia

Baku. 20 December. REPORT.AZ/ Small and medium sized commercial banks in Russia faces risks.

Report informs, says the review of Capital Economics on emerging European markets.

The review says that “though some risks are related with management problems, the major threat is about speedy overloan of private sector before the 2014 crisis with rouble.”

It became more difficult for smaller banks to withstand competition among such giant state banks as Sberbank and Gazprombank which own more than half of the total bank assets.

Senior Vice President of Sberbank Igor Bulantsev told the Investing.com that “there is no problem in the banking sector as well as in small and medium sized banks. Simply, mismanaged banks leave the market.”

President of Moscow International Currency Association (MICA) Alexey Mamontov says that the fate of small and medium banks was settled several years ago: “Strict regulation, economic decline and tough competence by state banks kill them. The situations deteriorated for the past year. The flow started from all banks to state banks. The small and medium sized banks leave the market, not mismanaged banks.”