In recent years, there has been a rapid increase in consumer lending. At the same time, despite high average annual growth rates in this segment for the past three years (48%-50%), the market is set to expand further. The retail loans/GDP ratio is not more than 3% compared with 74% in the US, 52% in the EU and an average of 20% in the developing countries.
Central & eastern Europe
Latest articles from Russia
Credit bureaux law is flawed
July 4, 2005Rumours of mounting bad debt problems in retail banking have led Russia to pass a law allowing credit bureaux to set up – but their proliferation is getting out of hand. Ben Aris reports from Moscow.
Slow track to reform
July 4, 2005Though it is aiding the general clean-up, deposit insurance is unlikely to change the face of Russia’s banking sector any time soon.
Persistent banks reap rewards
July 4, 2005Russia’s banks have been working to boost their reputation on the international capital markets. Ben Aris reports on how their bonds have surged in popularity.
Successful in its own right
July 4, 2005Gazprombank has broken away from giant parent Gazprom to diversify and build on its foundations, its chief financial officer Alexander Sobol tells Ben Aris.
Mortgage movement
July 4, 2005Mortgages could be the next big thing in Russia if the retail banks and the Kremlin have their way.
Central reservations
June 6, 2005
During the Russian Economic Forum, in April, deputy head of the Central Bank of Russia, Alexei Ulyukayev, who is in charge of Russia’s monetary policy, spoke to The Banker about the bank’s strategy.
Q Will the CBR target inflation as well as the exchange rate this year?
A The CBR has never publicly said it would target the exchange rates.
High-yield temptation
May 2, 2005
Russia’s ratings upgrade has caused a surge of interest in corporate Eurobonds from investors hungry for yield. Ben Aris reports on activity in the country’s bond markets.
In the offices of Moscow City State Debt Committee, the body that organises all of the Russian capital’s debt issues, outsized cheques for hundreds of millions of dollars and euros hang on the wall – money that chairman Sergei Pakhomov has raised for the city.
Russians take the plunge
May 2, 2005There has been an explosive rise in company flotations in Russia and plans are afoot to reform the market infrastructure to make IPOs easier. Ben Aris reports.
Competition drives M&A
May 2, 2005Competition is the main reason for Russian companies to buy others and realising value is the main reason to sell.Ben Aris reports from Moscow.