The business of banking is under pressure in Russia. An ongoing contraction in the economy, high interest rates and Western sanctions are challenging lenders, and the regulatory environment is adding another layer of difficulties. But since necessity is the mother of invention, some banks have big plans to come out of this situation stronger and, especially, larger.
As The Banker’s 2016 Top 1000 World Banks ranking showed, Russia’s banking sector has taken a hit. Having suffered a plunge in its banks’ profitability of about 50% in fiscal 2015, most lenders also faced a drop in their capitalisation, leaving only 11 Russian banks among the world’s largest 1000, compared with 19 in the 2015 ranking.
