Russian banking sector on threshold of serious structural changes?

Deputy Minister of Economic Development and Trade of the Russian Federation Arkady Dvorkovich did not exclude that big banks can merge in the Russian banking sector.

Thus, only one or two banks may remain, said Dvorkovich in an interval between the sittings of the World Economic Forum in Moscow. According to him, another one or two banks may be formed in case foreign companies will enter into the capital of Russian banks.

As the deputy minister said, there is room for four or five big banks on the Russian market.

Arkady Dvorkovich believes that in several years the share of the Savings Bank in the banking sector will amount to 40 percent, other big banks will account for 10 percent. "There will be no more room for big banks. But medium and small banks will exist," said the deputy minister.

Well-known economist Yevgeny Yasin said during the discussions at the plenary session of the economic forum that "Russia needs three or four big banks, such as the Savings Bank. In saying so the expert underscored that "the process of merger and absorption of banks must proceed in a natural way."

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Author`s name Editorial Team