On 4 July 2013, at
a special meeting regarding the development of the Russian banking system, Russian
President Vladimir V. Putin called on all parties to work together to find ways
to reduce interest rates on loans to businesses, especially to small and
medium-sized enterprises. Stating that
increased lending is necessary to boost growth in Russia Russia Russia Russia
The meeting was held
at an official residence of the President of Russia in the western Moscow Russia
Video of remarks by Putin at
meeting on development of banking system (2013-07-04)
Sources:
Text of speech from official website of President of Russia 20:30 )
Video of remarks by Putin, in high resolution: Совещание по вопросам развития
банковской системы (2013-07-04). Identical
video on YouTube: Путин
взялся за кредиты (2013-07-05)
List of attendees at meeting on development of banking
system: Участники совещания по
вопросам развития банковской системы (2013-07-04)
On 4 July 2013 the
commercial bank Eurasian Bank announced that a general meeting of shareholders
had approved a proposal to issue up to 500,000,000 new shares of common stock, with
a nominal value 1 RUB (€ 11.6 mln) each.
The shares are to be placed privately, with first priority given to the
bank’s existing shareholders. If fully
sold, the issue would raise the bank’s share capital from RUB 239,210,000 to
RUB 739,210,000 (€ 17.2 mln; as of 4 July 2013 one euro equaled RUB 43.0954 and
one USD equaled RUB 33.1605.) This will
be the first increase in the bank’s share capital since 4 September 2008 , when the bank’s capital (зарегистрированные
обыкновенные акции и доли) was increased from RUB 14,210,000 to RUB
239,210,000.
OJSC Eurasian Bank
(ОАО «Евразийский банк» – SWIFT code: ERSNRUMM) was founded in 1990, received a banking
license from the central bank on 27 November 1990 (license no. 969), and was incorporated in 1992. It has its headquarters in Moscow at 12
Krivokolenny Lane (Кривоколенный пер. д. 12), about 2 km northeast of
Red Square and 400 meters south of the Turgenevskaya subway station.
As of 31 May 2013 the bank was ranked #590 in Russia
The bank’s ratio of
loans to deposits on 31 May was just 76% because since October 2012 the bank
has been keeping a large part of its assets (one fifth to one third) in highly
liquid assets, primarily in non-resident Nostro accounts abroad. One reason for this might be a sudden
increase in deposits at the bank that occurred in October 2012.
According to
monthly data published by the Central Bank of Russia (Центральный банк
Российской Федерации), in October 2012 Eurasian Bank experienced a sudden
surge in its balance sheet line item “Deposits of non-governmental commercial
organizations with maturity of 91 to 180 days” (Форма 101: 42104: “Депозиты
негосударственных коммерческих организаций на срок от 91 до 180 дней”). Below is a summary of the data:
Eurasian Bank: Time deposits from
non-governmental commercial organizations
of maturity 91-180 days, June 2012
– May 2013 (in 000 RUB)
Month
|
Balance at beginning of month
|
Total credits (deposits) during month
|
Total debits (withdrawals) during month
|
Balance at end of month
|
Bank’s total liabilities at end of month
|
May 2013
|
750,000
|
44
|
-750,044
|
0
|
1,225,477
|
April 2013
|
750,000
|
450,000
|
-450,000
|
750,000
|
1,540,895
|
March 2013
|
750,000
|
0
|
0
|
750,000
|
1,728,063
|
February
2013
|
750,000
|
300,000
|
-300,000
|
750,000
|
1,829,735
|
January
2013
|
947,020
|
451,545
|
-648,565
|
750,000
|
1,840,799
|
December
2012
|
1,043,232
|
8,072
|
-104,284
|
947,020
|
2,152,707
|
November
2012
|
715,986
|
337,411
|
-10,165
|
1,043,232
|
2,006,596
|
October
2012
|
90,885
|
657,087
|
-31.986
|
715,986
|
1,685,803
|
September
2012
|
0
|
92,101
|
-1,216
|
90,885
|
1,431,909
|
August 2012
|
0
|
0
|
0
|
0
|
1,300,310
|
July 2012
|
0
|
0
|
0
|
0
|
1,190,891
|
June 2012
|
0
|
0
|
0
|
0
|
1,266,695
|
The monthly reports
published by the central bank break the data down further, into amounts in RUB
and amounts in other currencies (expressed in RUB equivalent), but for the sake
of simplicity only the totals for all currencies are given above. When the full data are taken into account,
they would seem to indicate that the bank in October 2012 suddenly acquired one
or two large commercial depositors that, in November 2012, came to account for fully
50% of the bank’s liabilities (see figures highlighted in green above). It might be difficult for such a situation to
arise without the bank violating the regulatory limits for its liquidity ratios
unless the bank’s management – or the commercial depositors themselves – could
effectively break the deposits up into a number of different accounts that would
be reported to regulators as unrelated.
As is evident in the above table, in May 2013 all non-governmental
commercial deposits of maturity 91-180 days at the bank suddenly vanished
again.
According to the
most recent information published by the bank (25 March 2013), Eurasian Bank is
99.999999% owned by a bank headquartered at 56 Kunaev St. in Almaty, Kazakhstan
– Eurasian Bank JSC (АО «Евразийский банк») – which in turn is 99.674%
owned by another company at 56 Kunaev St. in Almaty – Eurasian Financial
Company JSC (АО «Евразийская финансовая компания») – which in turn is
owned by the following three individuals at 33% each:
- Alekxander
Mashkevich (Машкевич Александр Антонович), a Canadian citizen residing in Wilen
bei Wollerau , Switzerland Frunze Kirghiz
- Alijan
Ibragimov (Ибрагимов Алиджан Рахманович), a Kazakh citizen residing in Almaty , Kazakhstan
- Patokh
Chodiev (Шодиев Патох Каюмович), a Belgian citizen residing in Wilen bei Wollerau , Switzerland
In 1992 these three
individuals became business partners, and are often referred to together as the
“Eurasian Trio” (Евразийская тройка), as they made their fortunes in Kazakhstan
Channel 31 Informbureau news
report of 3 May 2013 on “Eurasian Trio”,
in which they deny rumors that
they will be pulling out of Kazakhstan
Principal sources:
Bank of Russia data page for Eurasian Bank: Открытое акционерное общество
"Евразийский банк"
KUAP data page for Eurasian Bank: ЕВРАЗИЙСКИЙ БАНК
Bank’s quarterly and annual financial statements: Отчетность - ОАО Евразийский
банк
Bank’s balance sheet as of 1 April 2013 : БУХГАЛТЕРСКИЙ
БАЛАНС (публикуемая форма) на 01.04.2013 года (2013-04-25)
Bank’s income statement for 1Q 2013: Отчет
о прибылях и убытках кредитной организации по состоянию на 1 апреля 2013 г.
Bank’s annual report for 2012 prepared according to
IFRS: Финансовая
отчетность в соответствии с МСФО - 2012 год (2013-03-26)
Ownership structure of bank: Структура акционерного
капитала (2011-07-05)
List of persons having an influence on decisions at
bank: Список лиц,
оказывающих существенное (прямое или косвенное) влияние на решения, принимаемые
органами управления ОАО «Евразийский банк» (2012-06-06)
Wikipedia article on Alexander Mashkevich: Машкевич,
Александр Антонович (retrieved 2013-07-05)
Wikipedia article on Alijan Ibragimov: Ибрагимов,
Алиджан Рахманович (retrieved 2013-07-05)
Wikipedia article on Patokh Chodiev: Шодиев,
Патох Каюмович (retrieved 2013-07-05)
Channel 31 (31 канал) InformBureau
evening news video on “Eurasian Trio”, in which the trio deny rumors they will
be pulling out of Kazakhstan 07:38 to 11:07 in the file.)
In earlier news, on
17 June 2013 a mission of the
International Monetary Fund concluded a visit to the Russian
Federation
Financial sector policies: supporting
growth and stability
10. Financial stability risks are moderate
but rising. Retail lending growth in 2012–13 has been rapid,
largely driven by unsecured consumer loans. Some financial soundness indicators
have worsened, and declining capital adequacy and liquidity positions are
weakening banks’ ability to absorb shocks. At the same time, the debt burden of
households has been increasing. The CBR has appropriately responded with
prudential measures, including higher provisioning requirements and increased
risk weighting for high-interest loans. The authorities should also consider
introducing a formal ceiling on the debt-service-to-income ratio and higher
capital requirements for high credit concentration risks.
11. Recent steps to improve the supervisory
framework are welcome. Legislative amendments recently adopted by Duma
will expand CBR supervisory authority over bank holding companies and related
parties and allow the CBR to sanction individual directors and managers; raise
capital requirements; and use professional judgment in applying laws and
regulations to individual banks. The CBR should adopt Basel 2.5 and 3 capital
frameworks as planned, which will require some banks to raise capital. The
planned creation of a mega-supervisor could enhance the capacity to monitor
systemic risks, but the current weaknesses in supervision of nonbanks need to
be addressed, including power to apply fit and proper criteria to directors and
managers.
12. Improving corporate governance,
borrower information, creditor rights, and competition will strengthen the
financial sector’s efficiency and contribution to growth. The
recent slowdown in corporate lending is largely demand-driven. High lending
rates reflect weaknesses in corporate governance, collateral registry and
foreclosure, borrower opacity, and still high inflation expectations.
Expediting envisaged amendments to legislation regarding credit bureaus and
collateral registries would reduce information asymmetries and improve access
to financing, in particular for SMEs. Further divestiture of state-owned
banks—consistent with the Development Strategy for the Banking Sector through
2015— should also be pursued.
Source:
