Political uncertainties in Russia restrain banking sector development - expert
KRASNOYARSK. Feb 8 (Interfax) - The development of the Russian banking sector is somewhat held back now due to uncertainty as to the country's future politically, the chairman of Sberbank of Russia's Eastern Siberian branch Alexei Loginov thinks.
"This is due to the upcoming [presidential] elections. Investors are extremely cautious. The element of uncertainty will be gone after the elections, and then it will be possible to establish relations. This is a key thing for investors," Loginov said at a Tuesday Interfax briefing in Krasnoyarsk. The federal authorities' stated measures for improving the investment climate are "constructive and attractive," he said.
"The investment community has to evaluate and see the first steps. And those steps will be taken by a new government. Otherwise, Russia will close itself off from the world community," Loginov said.
Commenting on the liquidity market, Loginov noted that banks have sent an alarm signal. "The banking system has reached a certain point. Liquidity is leaving the market, this is visible in secondary indications. Demand is rising for those instruments that the [Central Bank of Russia] is offering, instruments of refinancing, and inter-bank borrowing rates are rising," he said.
This is reflected in the rising cost of depositing, Loginov said. "All the banks are gradually increasing the price of the money they accept from the population. And they are already approaching the 10% per annum threshold, a threshold I would say is somewhat of a critical figure," he said.