Private equity investment in central and eastern Europe could be set to increase as investors look to capture the region’s potential as its economies return to growth.
Latest articles from Russia
While the rapid devaluation of the rouble may have slowed, top Russian banks are still exposed to US dollar-denominated loans.
Russia’s central bank governor, Elvira Nabiullina, talks to The Banker about what is being done to address the inflation and devaluation of the rouble and the tools she is using to fortify the country’s economy against external shocks.
With the six-month drop in the global oil price stinging the Russian economy, it looked as if the country's government would introduce reforms to protect it against future shocks. But with prices on the brink of a recovery, this positive momentum towards change is in danger of being lost.
Banks in Russia are feeling the force of Western sanctions, with funds from international capital markets slowing and deposits experience a lull, but some institutions are finding ways to maintain commercial relationships with foreign investors.
Russia's banks endured a tough 2013, as shown by the results in The Banker's Top 100 ranking, with the picture only likely to get bleaker when the impact of a turbulent 2014 is known.
A tumbling exchange rate and sharp interest rate hikes point to growing threats to Russia's financial stability in 2015, even though the central government's debt burden is very low.
Russia has been a key profit driver for several Western European banks and the slide in the rouble will have a significant impact.
The speed and scope of sanctions imposed on Russia since the start of the crisis in Ukraine have forced many companies to enhance their compliance infrastructure and rewrite contracts to restrict potential liabilities from sanctions breaches.
Political tensions continue to dog Russia's capital markets. Following a difficult few months, the shoots of a recovery seemed to be appearing until the US imposed another round of sanctions on the country and a deadly attack on a commercial airliner flying over a disputed region of Ukraine sparked fresh hostilities, jeopardising the market's fragile rebound.
Global Risk Regulator
Most popular content
- The Banker Top 1000 World Banks 2015 ranking WORLD Press: IMMEDIATE RELEASE
- No rest for banks as fintech challenges loom large
- The bond bubble risk of cheaper corporate borrowing
- Top 1000 World Banks – Japanese banks struggle to grow in tough environment
- Bankers at a loss over IFRS9 provisioning rule
Most popular videos
- US interest rates
- Top 1000 World Bank 2015 results
- Interview with Erik Zingmark, deputy head of transaction products, Nordea - EuroFinance 2015 Copenhagen
- Chapter 1: The role of financial services in the UK economy
- Pre-IMF interview with Jean-Francois Tremblay, associate managing director, Moody's - View from IMF 2015