Wednesday, June 1, 2011

The central bank found out the geography of investment banking

CB published data on the country and the currency structure of assets and liabilities of the banking system of Russia outside Russia as of January 1, 2011. The most active customers of Russian banks and the banks themselves are investing through the Russian banking industry in the UK, Germany, USA and Austria, while the "white" investments in banks in Cyprus and Switzerland are low. As shown by the statistics of the Central Bank, the most active banking organizations to conduct operations with Russian banks, the UK - however, with virtually zero balance, since the 22.8 billion dollars of banks' assets of the Russian Federation in the country has 22.3 billion of obligations. It seems that what is happening reflects the role of Britain as a treasury center for Russian companies and banks, not only in Europe but worldwide, as well as the extent of the Russian financial transactions in London. Virtually the same picture emerges with regard to assets and liabilities of banks of Russia in Austria as a reference point for operations in Central and Eastern Europe. On the contrary, sharply surplus in terms of the balance of operations for Russia's banks are transactions with Germany (by 3.6 billion of assets in the country is 7.1 billion commitment) and especially - with the U.S. - there is at 2.2 billion commitment has 13.2 billion assets. Thus, despite the popularity of Britain as the Treasury Centre, the United States for Russian banks and their customers is probably the main market - at least, the balance of assets and liabilities of Russian banks outside the Russian Federation in the U.S. record for all countries. The structure of Russian banks and their clients in U.S. assets demonstrates their predominantly speculative in nature: at 1,1 billion dollars of long-term investment banks in Russia in U.S. assets accounted for 12 billion of short-term investments. For the UK, the amount of short-and long-term investment in assets is roughly equal - it shows approximately equal importance for Russian players in the UK and the USA. In the group of countries where the investments of Russian banks dramatically greater than their commitment to the local economy, Cyprus and Ukraine. On the contrary, in terms of balance of major donor to the banks of the Russian Federation is France - the obligations of Russian banks in the country is 8.2 billion in assets for 4.1 billion. Other major donors to the Russian banking system from the standpoint of net foreign liabilities and assets are the Netherlands and Luxembourg.

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