According to some sources, between $30 and $50 billion are kept in Russia in cash as personal savings. It makes Russia the world's second largest depository of cash dollars, after following the USA, and means that 'relations' between the dollar and the euro will concern everyone in Russia.
Like other banks all around the world, the Central Bank of Russia has begun to publish the official euro-per-ruble exchange rate, and to hold financial transactions using the euro as a reserve currency. The euro-per-ruble exchange rate is set depending on the euro-per-dollar rate, and currently (January 7) amounts to 25.73 rubles/EUR1. (fin-obzo.txt) Participants of the FOREX market in Primorsky Krai are still wary of dealing with the new currency. However, an increase in the volume of speculations with the euro is expected in the near future. Russian...
In 1998, the net volume of assets of Russia's banking system decreased from $107 billion to $40 billion. According to the InterFax agency, there has not been such a low level in the banking sector since 1993. Five of Russia's ten biggest banks - Income Bank, SBS-AGRO, UNEKSIM, Russian Credit and MENATEP - which previously were recognized the most reliable Russian banks, currently don't meet the Central Bank requirements, and their debts are being traded on the Russian Trading System. The crisis most seriously damaged those "giants" which were under the control of resident private capital. The only such bank of the former ten biggest banks which is still able to pay is the International Industrial Bank. Two banks from the former Big Five are under the control of the government (SberBank and VneshTorgBank); one bank is under the control of foreign banks (International Moscow Bank); and the last one belongs to the biggest national monopolist, GazProm (GazPromBank). The number of personal deposits in the banks decreased several fold after the crisis. In any case, experts do not expect an important increase in the number of personal deposits in Russian banks until 2001. Russian...
On December 31, CBR's Board of Directors decided to provide a 50 million ruble credit to Dalnevostochny ("Far Eastern") Bank for one year and on the security of the Primorsky Krai administration. Moreover, the Primorsky Duma has recently allowed the Krai administration remain a guarantor for a similar appeal to the Central Bank on behalf of the other biggest local bank, DalRybBank. DalRybBank, which suffered most than other banks from the August financial crisis, needs more - it's going to ask for a 180 million ruble credit for a period of one year, and possibly for collateral of the newly-constructed bank office building, worth about 200 million rubles. Russian...
SBS-AGRO, another bank which suffered losses this past autumn, is widening its network in Primorsky Krai. It is currently headed by the former vice-governor and "chief financier" of the Krai administration, Nikolay Sadomsky, who tendered his resignation at the end of 1998. This past week, Sadomsky visited Ussuriisk and Nakhodka, probably searching for proper buildings in which to establish new offices. Russian...
Two local banks were referred to in the magazine Profile in its recent review of Russia's 100 Biggest Banks (on the size of their capital, as of November 1, 1998). DalRybBank ranks 89th, and Dalnevostochny ("Far Eastern") Bank ranks 90th. Moreover, one more local bank, VostokBusinnessBank, was ranked 24th in the list of "most reliable Russian banks." Russian...
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