Official forecasts consequences of IAS for Russian banks

The transfer of Russian banks to International Accounting Standards (IAS) starting in 2004 would activate their takeovers by foreign competitors, Alexander Mamut, head of the task group for the financial and stock market in the Russian Union of Industrialists and Entrepreneurs, forecasted at a meeting with a French delegation of businessmen, MEDEF, today. He explained that foreign banks would have goals for purchases after Russian banks became transparent.

Mamut stressed that the emerging of foreign banks in the Russian banking system would be a positive factor. He believes that any forms of possible takeovers were possible - the establishment of new banks or the purchase of existing banks with their further reorganization.

The official from the Union of Industrialists and Entrepreneurs announced that the Union supported an increase in the number of securities traded on Russian stock exchanges. This can be achieved by increasing the volume of internal government loans, issuing new ruble corporate loans or increasing the number of investment companies and other financial intermediaries.