Speaking at the WEF Russia meeting on Tuesday October 18th, Peter Aven noted that state banks significantly reinforced their position and foreign banks increased their client base during last 2 years. That means that Russian private banks will have to make a greater effort to keep their market shares while examining the possibility of mergers and acquisitions to strengthen their positions.

According to Aven, the launch of deposit insurance in 2004 testified to the Central Bank’s increased efforts to tighten supervision over Russian banks. Out of a total of 1,270 existing banks, only 927 were granted access to the deposit insurance scheme. All banks present in Russia continue to focus on retail banking development.

“The fact that only 5 to 10% of the population has ever taken out loans means there is a high upside potential for the retail banking market. Growth in consumer lending reflects a continuation of the boom in the consumer goods sector and also shows that the service component of overall economic growth is increasing,” said Aven.

The session included Michael Foley, Senior Managing Director, Europe, Middle East and Africa, Moody’s Investors Service, United Kingdom,? Andrei L. Kostin, Chairman and Chief Executive Officer, Vneshtorgbank, Russian Federation,? Hans-Joerg Rudloff, Chairman of the Executive Committee, Barclays Capital, United Kingdom. Moderated by Alexis O. Rodzianko, Chief Executive Officer and Country Head, Deutsche Bank, Russian Federation.

The World Economic Forum Russia Meeting brought together 250 Russian and foreign business leaders, key members of the Russian Government and civil society, who gained a first-hand view of economic, political and social developments in today’s Russia and the country’s position in the world.