Chapter 2. Foreign banks in Russia
Foreign banks in Russia prior to 1917. According to the researchers (for example, Bovikin VI.) the Russian banking system was established in the second half of the XIX century. «The founders of» the national banking system can be considered as private shareholders, rail operators and various merchants.
In 1900 year the volume of investments in the economy of our country was estimated at 750 million rubles. Banking system could not satisfy the needs of the rapidly growing economy, so companies had to turn to foreign banks - the French, German and Belgian. In the early twentieth century in the Russian Federation of cases of creation of branch of the system and direct control of their parent banks were isolated cases. According to the Russian legislation was banned direct banking activities, the exception was the French Credit Lyonnais, which appeared in Russia in 1878. Thus, foreign capital fell into the Russian economy through domestic banks in the authorized capital of the participation of foreign investors. This is the distinctive feature of Russian banks, namely, those national banks with foreign capital, and not branches of foreign banks in Russia.
Peculiarity of the strategy of commercial banks, regardless of the form in which foreign capital is present in the Bank - controlling or partial possession of shares of the national Bank, was the introduction of the capital of Russian enterprises.
After the October events of 1917 attitude towards foreign banks have changed radically. Shortly after the «iron curtain» access to the national market of the foreign capital was closed. As history has shown, concessions in this aspect started only in 1972, when Deutsche Bank was the first from foreign banks have opened a representative office in Moscow. However, the opening of the representative office does not imply implementation of banking activities. Cardinal changes not only in the country but also in the banking sector began in the late 1980s - early 1990s. Proof of this can serve as a basis for the International Moscow Bank (IMB) in 1989. Foreign banks in Russia since the 1990s, for the year 2009. The beginning of the 1990-ies in Russia can be characterized as a period of political and economic shocks. Therefore, for foreign investors, this period can be characterized as the period of mistrust of the Russian economy and, in particular, the banking sector (banking crisis in 1995).
At that time, were very popular «joint» banks are banks with prevailing part of the foreign. International Moscow Bank was established to attract in the USSR not only foreign capital, but also for the attraction of modern technologies. In 1991 the banking system collapsed. The collapse of the Vnesheconombank of the USSR - this is the only and full monopolist in the sphere of foreign trade and foreign exchange settlements. In the larger mass of clients of banks, in particular, IMB, were the companies involved in the export of raw materials - oil, gas, coal, wood.5
Prior to 1995, the Russian market of banking services includes some of the large foreign banks such as Credit Suisse. However, as has already been noted in the history of the development of foreign banks in the European Union, banks, заходившие to the Russian market, initially in the service of «their» customers and their operations in Russia.
Since 1997, the attitude of foreign capital changed to the Russian banking sector. A period of active interest to Russia started. Foreign banks greatly increased the number of operations on the securities market (a great stir to GKO from foreign banks manifests in the fact that investments in these securities amounted to about 40% of the currency balance sheets of banks). Before the crisis of 1998, foreign banks have been actively to issue ruble-denominated loans to companies. The 1998 crisis has hit the Russian banking system. However, it is worth noting that the crisis has affected mainly the commercial banks without foreign capital. Banks with foreign capital have become some of the stabilizer of the entire banking system of Russia, because for the corporate customers of foreign banks have become the factor which prevents the escape of capital from the country. The cause of the stability of the foreign banks in the period of crisis of 1998 is that the crisis has in no way affected parent of the economy of the banks. By the year 2000, the process of recovery of foreign banks can be considered complete. A new wave of international expansion of foreign banks began in 2001. Banks have to perform a greater range of services, compared to the mid-1990s. The strategy of many banks was in the desire to occupy a large part of the market of banking services in Russia. In the second half of the 2000s there are three main strategies of foreign banks in Russia:
The creation of large universal banks;
The strategy of «niche player»;
The strategy of the support of «home» clients.
However, the crisis of 2008-2009 greatly changed the situation with international banks in Russia. The economic crisis in Europe forced the parent banks to withdraw their assets from the Russian market to keep the basic structure. The analysis of this situation will be carried out in the Chapter 3.
Chapter 3. Econometric analysis.
The third Chapter will be written after the training. With the help of empirical data obtained in the course of the program, will be tested two econometric models, stated in the introduction. Conclusions about the effectiveness of the activity of foreign banks on the Russian market of banking services will be made on the basis of the test result.