Former deputy chairman of the Central Bank Sukhov said that 20-30 foreign banks will leave the Russian market
In the next year and a half, several dozen banks will leave the Russian market, such a massive exodus was predicted by the head of the ACRA rating agency and the former deputy chairman of the Central Bank Mikhail Sukhov. His words are quoted by the newspaper “News”.
He assessed the probability of leaving such foreign banks as Raiffeisen and Unicredit as high and suggested that they would most likely carry out a voluntary liquidation procedure. In total, we can talk about the upcoming departure of 20-30 foreign credit institutions, Sukhov suggested. “I do not expect that foreign banks will bankrupt their subsidiaries: any default causes unpleasant economic consequences for the parent organization,” he commented.
In mid-September it became known about the proposal Central Bank allow foreign banks to open branches in Russiadespite a de facto ban in place since 2013. According to the initiative, only credit organizations of states recognized as friendly will be able to present their units in the country. Only two operations will be available in these banks: opening and maintaining accounts of individuals and legal entities.
In the context of sanctions pressure on the Russian financial system, such a measure could help in settlements in national currencies for foreign trade operations, as well as in attracting investment in the country’s economy.