Garegin Tosunyan: the enlargement of banks gives more harm than profits

The law, setting the minimal size of bank capitals at the level of 90 million rubles came into force in Russia since January 2010. In 2012 this requirement will be toughened – the threshold will rise up to 180 million rubles. The Russian Banks Association considers these requirements too severe and not corresponding to the real needs of the market.

“The increase of the minimal bank capital by no means contributed to the anti-crisis measures” – the President of the Russian Banks Association Garegin Tosunyan said today during the conference “Banks, Processes, Standards, Quality”, held in Ufa – “The majority of the banks have found the means for recapitalization and I think they’ll find 180 million rubles too. This is not the aim the Government has to work over during the crisis. Moreover, this step has seriously hit small and medium business, since they work with the banks of their scale”. At the same time the opponents say the result excuses private problems. These measures are aimed at clearance of the market from inefficient banks and the banks, engaged in shady operations and this is the main thing. But under such approach the side effect in the form of the crash of small banks and problems with small business crediting is grasped as an annoying misunderstanding and it is inadmissible the President of the Russian Banks Association believes.

“They say, what the difference is as soon as this step affected dozens and hundreds small clients, which didn’t have the key role in economics. I think this is wrong and very dangerous approach. It turns out to be that in case people in a small town are left without heat and water, we needn’t worry too because no crucial after-effects for the country are expected in this case. When thinking about the state and the Russian economics we have to think about every participant and not about the “monsters”, which can find the sources of financing and the access to authority in any case. Turning to enlargement, monopolization and centralization we take the risk to receive new “Potemkin villages” and the rotten basis. The orientation to shortening of the number of banks in the market will bring more harm than real profits”.