International (Western: European, American) banks in Russia
According to Russian legislation, foreign banks in Russia can not open branches, but may have a share in Russian banks. In other words, foreign banks may open subsidiaries in the Russia, which are inherently Russian banks, but the founders are completely or partially foreigners.
These banks operate on Russian laws which include:
– being inspected, controlled by, and sending regular reports to the Central Bank of Russia
– making mandatory contributions to the reserve fund
Thus, foreign banks are on an equal footing with Russian banks, therefore, it is correct to say that they aren’t foreign banks, but, merely banks with foreign participation.
Top 5 foreign banks in Russia:
Raiffeisen Bank has operated in Russia since 1996. This bank provides full range of services to private and corporate clients, residents and non-residents – in both rubles and foreign currencies. ZAO “Raiffeisenbank” is a subsidiary of Raiffeisen Bank International AG.
UniCredit Bank is a universal commercial bank operating in Russia since 1989. 100% of the voting shares owned by UniCredit Bank Austria AG, Vienna, Austria, which is a part of the financial group UniCredit. UniCredit Bank is in a strong position on the Russian market of corporate banking services, at the same time it’s among the leading banks in the market of financial services for private clients.
Citibank is 100% subsidiary of the American Citigroup, one of the largest financial institutions in the world. The main activities of the Russian Citibank are: lending to multinational corporations, major Russian businesses and individuals (consumer loans and credit cards), transactions in the foreign exchange market and equity market, and attracting funds via depositors. The largest source of Russian Citibank’s assets are the funds of legal entities, which account for half of its total assets.
Rosbank is a universal financial institution, one of the largest Russian banks with a well-developed branch network. Key areas of activity are: retail, corporate, investment and private banking. Rosbank is controlled by the French banking group Societe Generale (99,95% share). Rosbank serves more than 3.3 million individual clients in 71 regions of Russia. The bank’s network includes more than 550 branches and 3,000 ATMs. The Bank of Russia included Rosbank in its list of 10 systemically important credit institutions in the entire country.
Home Credit & Finance Bank is also one of the largest retail financial institutions in the current Russian banking market. It’s a subsidiary of the Czech Home Credit Group and part of the international PPF Group (founder – Czech businessman Petr Kellner). Since 2008, this bank has gradually expanded its activities in the direction of the universal retail banking business. The main source of assets for the moment is individual, private depositors.
Other foreign banks in Russia: Deutsche Bank, DeltaCredit, Nordea Bank, ING BANK (EURASIA), Vostochny Express Bank, OTP Bank, Credit Europe Bank, Rusfinance Bank, Banca Intesa, HSBC.