Competition on an Unequal Field

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This was stated yesterday, April 2, at a meeting of the Association of Russian Banks (ARB) by ARB President Garegin Tosunyan. He believes that the entire banking sector and the Russian economy should strive for harmonious development, and not be assessed by the local results of individual players or cities. "Over 10 years, the number of banks has decreased by 2.5 times. There are 168 regional banks left in Russia, of which 82 banks have a universal license, 72 have albania whatsapp number database a basic license, and the remaining 14 are non-bank credit organizations. In practice, regional credit organizations demonstrate an advantage, and it must be understood that this is not just a good knowledge of local specifics, not just the speed of response to market demands and customer requests - this is an individual approach to clients," noted Garegin Tosunyan and reported that the ARB proposes to implement systemic measures to support regional banks.



Chairman of the Board of PJSC Chelyabinvestbank Sergey Burtsev noted during the meeting that small and medium-sized credit institutions have to compete in unequal conditions. He said that the new reporting and requirements, unlike large banks, hit small ones harder, subjecting them to continuous checks. "Since small banks are easier to check, there is increased control and a huge number of requests and questionnaires that are not subject to automation. A manual method of preparing answers to questions is required. For example, collecting information about banking and payment agents, about surveying operators for receiving payments from agents and trade and service enterprises, about the network of office branches and ATMs, about the availability of ATMs in rural areas, about collection and transportation, about cross-border transfer services, as well as about monitoring the activities of money transfer operators - and all this over the past three months," explained Sergey Burtsev and noted that such requests paralyze the work of a small and medium bank, since they require a manual method of filling out documents.

Sergey Burtsev noted several new ways of creating unequal conditions - for example, creating conditions for calculating the deposit insurance system at different rates. "I am frightened by the idea that some banks may be subject to increased contributions to the deposit insurance system due to their reliability or unreliability. Long ago, large monopolists proposed to immediately make different rates in the deposit insurance system, but small banks, which will allegedly be less reliable, will be required to transfer increased contributions to the deposit insurance system. In general, the attitude should not be from the point of view of insurance, by and large it is a tax, so everyone should pay the same - regardless of the size of the passive base," Sergey Burtsev believes.

He also spoke about many difficulties in relation to small and medium-sized banks and suggested asking the regulator to loosen regulations, reduce the number of reports for the period, questions, requests, questionnaires, and also to ensure the conditions of the requirements of the legislation for all credit institutions regardless of their status and size. "It is better to start with large credit institutions, and not practice on small ones. Let's think about how to stop complicating and how to simplify some regulatory standards," suggested Sergey Burtsev.

FG Finam analyst Igor Dodonov believes that the advantage of regional banks is that they know local specifics better, can offer clients an individual approach, and interact better with regional authorities and development institutions. "Many regional banks are often captive, can pursue riskier financial policies, and are more vulnerable to economic shocks. Accordingly, they are often much less reliable than large federal players. But regional banks are still needed, and the trend of their reduction can hardly be welcomed. In particular, in many developed countries, such banks continue to play an important role in servicing local client groups, primarily private entrepreneurs, small and medium businesses, and individuals," said Igor Dodonov.