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Business / Finance

The end of the Renaissance: will the Russian private banks themes of the day 20.08.2018 at 21:00

Banking and financial news on the website

VTB has announced the imminent acquisition of Bank Vozrozhdenie. Post-default and more than one crisis, the private Bank will be dissolved in the structure of VTB. Is the place in Russia for private banking?

the Revival will be engaged VTB

last week it became known that VTB and the Fund Bonum Capital (Cyprus) Ltd. reached agreement on key terms of the acquisition of VTB Bank Vozrozhdenie. VTB intends to acquire the controlling stake of "Renaissance" (not less than 75%). The parties expect to close the deal in September after receipt of all necessary regulatory approvals and corporate resolutions of the VTB group.

However, this deal may have some problems. August 15 London's High court has again arrested the shares of "Renaissance" in the suit of the company Withersworlwid representing the interests of the holders of the loan notes, issued under the guarantee of the Bank's owners, the brothers Alexey and Dmitry Ananiev. However, it is obvious that the private Bank "the Renaissance" will remain.


the Chairman of the Board of "Revival" will be Gennady Soldatenkov, currently holding the position of member of the management Board of VTB Bank (from the "Revival" implies that Soldatenkov has led the Bank since August 15. — Approx. Banks.PY). The current Chairman of the Board of "Renaissance" mark Nakhmanovich will continue to work in the Bank as Deputy Chairman of the Board of Directors. The team of Bank Vozrozhdenie, with extensive experience in the Moscow region and other regions, will be saved, assured of VTB.

the Main value of "Revival" — in client base and strong positions in the Moscow region, the Bank's retail 750 thousand and 50 thousand corporate clients. The Bank was established in 1991 on the basis of the Moscow regional Department of Agroprombank of the USSR. The founder of "the Renaissance" Dmitry Orlov developed the Bank as a universal credit organization. After the death of Orlov shares of the Bank bought the structure of the Ananyev brothers. It was planned that "Revival" will be attached to promsvjazbanka. But PSB went for the rehabilitation and "Rebirth" were owned by Cypriot companies. The role of the Fund Bonum Capital (Cyprus) Ltd. to the end not clear. Sources attribute the Foundation to the structures of Suleiman Kerimov.

"now the top 5 banks controlled by the state"

the state's Share in the banking sector is not less than 70%, says the Director of the Department of Analytics and content Sabina Hasanova.

"If we assume that the state will no longer absorb the largest private banks, now the top 5 banks controlled by the government agencies and state corporations, whose share in banking sector assets is 59% on 1 July 2018. If you add other "state banks", such share will not be less than 70%, and assets of "Revival" in this case will add tenths of a percent," — said Hasanov.

the Director on Bank ratings "Expert RA" Vladimir Teterin indicates that private players are increasingly competitive pressure from state-owned banks in fight for the existing high-quality customers. "While weak economic growth and lower country of investment potential do not leave hope for a mass opening of new businesses and increase jobs," says Teterin.

the Analyst of "ALOR" Alexei Antonov believes that such a large share of the state in the banking sector is harmful to its development and economic development. "For example, the FAS proposes to adopt special measures to limit further growth in the state share in the banking sector. However, we are talking about the obstacle to further increasing, not reducing the existing shares, as under the rehabilitated banks in the system now it is impossible. One of the main disadvantages of a high share of the state in the banking system, reducing competition in the sector. Hence, the low interest rates on deposits in the most reliable state-owned banks, and lack of desire to fight for the client, improving service. Accordingly, the increase in the share of the state in the banking sector to 70% and higher will have negative consequences first of all for healthy competition among other market participants and would not facilitate the emergence of best deals on a number of banking products", — says Antonov.

"the Largest state-owned banks — a separate League from which several segments can compete single largest private banks. The League sets the bulk of the trends," adds Sabina Hasanova.

the Banking business does not attract private investors

Alexei Antonov recalls that the state has taken on its balance sheet a sufficient number of credit institutions, which are thus in fact private have become public. "Now the balance of the state formed a sufficient number of rehabilitated credit institutions from the private sector (Bank, Promsvyazbank, "FC Opening", and the Bank of Moscow), which automatically lead to the obvious conclusion: the state's share in the banking sector is really big," he says.


Director on Bank ratings "Expert RA" Vladimir Teterin doubts in the er of the privatization of the rehabilitated state banks.

"If the privatization of rehabilitated with the participation of the Fund the consolidation of the banking sector banks will be conducted, then, apparently, the price to the buyer must be very attractive. At the same time a significant discount to equity should not drastically affect the state budget. Based on this assumption, the most likely seems operative selling is not "Open" and the Asian-Pacific Bank (due to the fact that it is much smaller in size). But the government is hardly noticeable decline in the medium term, rather, quite the contrary," predicts Teterin.

"the scope and Scale of problems of rehabilitated banks is a barrier to ensure that they are returned to the private sector. Therefore, the option with the sale of the shares of such credit institutions in the structure of banks with state participation may be one of the obvious solutions to their issues. It is not excluded that in the years after the takeover of the structures of large state-owned banks may be new players on the basis of previously sanitized banks," suggests Anton.

According to Teterin, the banking business is not attractive for investors. Lending to the real sector stagnated in fact: as of the middle of this year, more than 250 banks maintained excess (more than 30% of assets) low-yield liquidity cushion, the share of such banks in total number of credit institutions amounted to almost 50%. In these circumstances, to say that for most private investors, the banking business remains attractive, is not necessary.