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The Central Bank has allowed a number of foreign banks to buy stakes of more than 20 percent in Russian banks, Gennady Melikyan, Senior Deputy Chairman of the Central Bank of Russia, told reporters on Friday.
Melikyan said that several western banks were planning to enter the Russian market by acquiring stakes in Russian banks. “A few days ago, I signed several letters allowing foreign banks to buy stakes in Russian banks,” he said.
According to Melikyan, these foreign banks are major players, but they do not yet have business in Russia. Russian banks, in which they want to take stakes, operate in Moscow and are among Russia’s top hundred banks.
The acquisition of stakes exceeding 20 percent in Russian banks requires approval by the Central Bank. The permits are valid for one year.
The Central Bank welcomes foreigners to the Russian banking system, Melikyan said, noting that there are currently 188 banks with foreign capital in Russia.
Under Russian law, foreign banks are not allowed to open branches in Russia, but can open subsidiaries, and the Central Bank is not likely to stand in their way.
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