Nabiullina: it is fine to nationalise banking sector

Nabiullina: it is fine to nationalise banking sector

Russia's Central Bank is ready to solve the problem of unsustainable banks even at the cost of temporary nationalisation, Russian Central Bank Governor Elvira Nabiullina said.

"This raises certain questions: how fair is the competition between private and state banks, and so on," the Central Bank head admitted. "But I'm not inclined to exaggerate the importance of the state's share in the banking sector," she said.

"There is a trend, it is not very good," Nabiullina said. "But, in our opinion, it does not have any huge negative consequences for the banking system," RIA Novosti cited her as saying. "We must solve the problem of unsustainable banks even at the cost of temporary nationalisation," the Central Bank governor concluded.

The advisor on macroeconomics to the CEO of the 'Opening-Broker' brokerage house, economist Sergey Hestanov, speaking to a correspondent of Vestnik Kavkaza, noted that most part of the banking sector nationalisation has already been implemented. "Most likely, such high-profile events as last summer will not be repeated. The banking sectornatio nalisation is undesirable, on the one hand, but, on the other hand, not catastrophic. Last summer there was a certain dissonance: Russia's economy is about 70% state-owned, but its banking system, on the contrary, is mostly private," she explained.

"Theoretically, in the future, when the cleaning of the banking sector is over, the Russian Central Bank can take steps to privatize it, but in practice it will not be realized for a rather long time. Most likely, the Central Bank will start talking about denationalization now, but in reality we will not see any steps within a period of less than 10 years," Sergei Hestanov predicts.

The head of the department of stock markets and financial engineering of the Faculty of Finance and the Banking Business of RANEPA, Konstantin Korischenko, in turn, drew attention to the main problem of increasing the share of the public sector in the banking system. "The question is whether state banks are more effective in fulfilling their tasks in financing the Russian economy than private banks," he said.

As for the denationalisation of the banking sector, it is only possible to talk about those banks that are controlled by the Russian Central Bank. "The Central Bank can take such measures solely as the owner of banks that came to it through the Fund for the Consolidation of the Banking Sector. In addition to Sberbank and organizations that have passed through the Consolidation Fund, all other banks belong to the state not through the Central Bank, but in other forms," Konstantin Korishchenko said.


Vestnik Kavkaza

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