{"id":39650,"date":"2012-07-26T14:21:23","date_gmt":"2012-07-26T14:21:23","guid":{"rendered":"https:\/\/armbanks.am\/2012\/07\/26\/236084\/"},"modified":"2024-12-15T12:58:43","modified_gmt":"2024-12-15T12:58:43","slug":"russian-banks-safeguarded-against-external-shocks-cb-head-says","status":"publish","type":"post","link":"https:\/\/armbanks.am\/en\/2012\/07\/26\/39650\/","title":{"rendered":"Russian banks safeguarded against external shocks; CB head says"},"content":{"rendered":"<p><strong>YEREVAN, July 26. \/ARKA\/.<\/strong> Structural changes in the balance sheets of Russian banks since the 2008 crisis have strengthened the financial sector against any external shocks, Sergei Ignatiev, head of Russia\u2019s Central bank, said in an interview with the Financial Times, banki.ru reports.<\/p>\n<p>\u2018The remarks by Sergei Ignatiev\u00a0 appeared aimed at calming investor fears that a serious crisis in the eurozone would have a catastrophic effect on Russia \u2013 as it did in the autumn of 2008 and spring of 2009, when the ruble was devalued by a third and the banking system was placed under severe stress for the better part of a year.<\/p>\n<p>\u201cIn this respect, things are in a much better state,\u201d Mr Ignatiev said, pointing out that in August 2008, on the eve of the last crisis, net foreign assets of the entire Russian banking system stood at negative $100bn, while today this figure \u2013 total foreign assets minus total foreign liabilities \u2013 is positive $44bn. Total foreign liabilities have shrunk from $208bn in August 2008 to $176bn today.<br \/>\nWhen banks owe more in foreign currency than they are owed, they are particularly vulnerable to a devaluation of their home currency. The risks that such a structural imbalance impose are greater when a country allows its currency to float freely, as Russia has recently done.<br \/>\nWhat does worry the central banker is the large outflow of capital from Russia in 2011 and this year. Mr Ignatiev said that Russian and foreign bank subsidiaries in Russia were responsible for $23bn of the $80bn outflow in 2011.<\/p>\n<p>\u201cIt\u2019s a lot, because Russia is not yet a developed country, and there is such an idea that we should attract capital, because the returns are higher than in developed countries,\u201d said Mr Ignatiev. \u201cI think it\u2019s a bit of an abnormal situation for there to be such an outflow of capital from a country with such potential.\u201d<\/p>\n<p>Mr Ignatiev added that Cyprus was the only crisis-hit eurozone country that Russian banks had exposure to.\u00a0 -0-<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Structural changes in the balance sheets of Russian banks since the 2008 crisis have strengthened<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":"","tstyn_error":""},"categories":[9214,9216],"tags":[12163,12146,13223,12750],"class_list":{"0":"post-39650","1":"post","2":"type-post","3":"status-publish","4":"format-standard","6":"category-banks-en-en","7":"category-news","8":"tag-banks","9":"tag-russia","10":"tag-shocks","11":"tag-purchase"},"acf":[],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/armbanks.am\/en\/wp-json\/wp\/v2\/posts\/39650","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/armbanks.am\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/armbanks.am\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/armbanks.am\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/armbanks.am\/en\/wp-json\/wp\/v2\/comments?post=39650"}],"version-history":[{"count":0,"href":"https:\/\/armbanks.am\/en\/wp-json\/wp\/v2\/posts\/39650\/revisions"}],"wp:attachment":[{"href":"https:\/\/armbanks.am\/en\/wp-json\/wp\/v2\/media?parent=39650"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/armbanks.am\/en\/wp-json\/wp\/v2\/categories?post=39650"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/armbanks.am\/en\/wp-json\/wp\/v2\/tags?post=39650"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}