The Bank of Russia approved important domestic market players
Every year the country’s chief financial regulator selects companies that are important to the sphere. The other day, the Bank of Russia approved these credit institutions, which included major market participants.
This list includes 11 banks, most of which have been listed by the regulator for many years:
- UniCredit Bank and others.
The approved list has not changed much over a long period of time. The only major change in 2007 was inclusion of Moscow Credit Bank in the list.
But despite the stability of published data, experts gave high chances that another partner – Sovcombank – would appear. The forecast was published by analysts of S&P agency. Such success of the financial institution was predicted in connection with raising its rating to “BB” and “A+(RU)” by AKRA. Such a high assessment of the company’s performance indicates its importance for the domestic market and its development. Sovcombank is actively gaining momentum and shows excellent chances to become one of the systemically important institutions for the segment in the near future.
The list approved by the Bank of Russia includes those organizations that account for more than 60% of domestic sector assets. Despite the important role in the financial system, a number of rules apply to these companies. They must adhere to short-term liquidity ratios and have a certain amount of capital. These requirements are set out in Basel III.
Russian banks become more reliable: World Bank rating
The World Bank presented its rating, where it evaluated the financial institutions of different countries. The main criterion is the factor of providing favorable conditions for doing business. This year Russia ranked 28th, and last year it held 31st position.
In addition, banks assess organizations for connecting branches to the electricity supply system. According to this criterion, Russian banks were ranked 7th, and last year they were ranked 12th.
The terms of property registration remained unchanged and brought domestic organizations 12th position. But the contract performance factor fell from 18th place to 21st.
On the whole, Russian banks improved their performance in six categories, including speed of company registration, protection of minority investors, improved taxation system and others.
The leaders of the rating from the World Bank are institutions of New Zealand, Denmark, Hong Kong, USA, Georgia, and Norway. Russia is ranked ahead of Canada, Australia, Lithuania, Germany and Finland in terms of business conditions.
The rating results showed that the reforms introduced in 2012 are yielding results. Thanks to them, the country managed to rise from 120 to 28 (in 2012).