By Marcus Williams
Russia intends to half the size of its banking sector by raising the minimum shareholder equity for its banks to 1 billion roubles ($35m).
Financial Minister Alexei Kudrin made the promise to shake-up Russia’s bloated 1,100-plus banking system at a financial forum yesterday.
About 50 of the largest banks in Russia make up 80% of total assets while many of the smaller institutions are regarded as little more than financial fronts for individual businessmen.
Figures from government, central bank and the industry upped their calls for consolidation of the sector following last year’s crisis but the overall numbers remain unchanged.
Kudrin told the Forum: “I am ready, exactly a year from now, to propose a bill that increases the banks’ minimal capital to 1 billion roubles and to give the banks five years to reach that level.”
Kudrin estimated some 500 banks could comply with the demand.
