The largest state-owned banks still dominate the top of Russia’s banking system, but high returns, specialisation and consolidation in the private sector are creating signs of change.

Russia's regional banks are often closer to their customers than the Moscow-based giants, but they can be hampered by a lack of both capital and transparency. While a new development fund is intended to change that, some critics argue that new capital adequacy requirements threaten their very existence.

Russian central bank governor Sergei Ignatiev's decision not to intervene when the country's currency came under pressure earlier this year has been welcomed by economists as a sign that the country's commitment to a more open economy is genuine. The governor explains to The Banker that such a policy is part of his long-term plan for the country.

With oil prices riding high and minimal sovereign debt, Russia has been something of a safe haven. But high valuations and a poor corporate governance environment have impeded equity investment.

The consolidation of Société Générale's Russian subsidiaries will create a universal bank with firepower, its chief executive Vladimir Golubkov explains to Brian Caplen.

In the space of a few months, Russia’s second largest bank has engineered ground-breaking bond issues, a kick-start to the government’s privatisation programme, and two acquisitions.

Bank of Moscow's debut Eurobond could hardly have been launched at a more difficult time. The political intrigue surrounding the mayor of Moscow was compounded by a potential change of ownership at the bank and a downgrading by Moody's.