Dmitry Leus: “Risk management is the bank’s most important task”
Every retail bank operates within its own risks universe. Some banks take less than a few minutes to give credit at incredibly high rates. Others credit at lower rates, but take weeks to scrutinize you. We have spoken to Dmitry Leus, Chairman of Bank , about risk management, the reasons behind the spectacular growth of the Russian mortgage market, and about his Bank’s expansion plans.
- Bank launched a 500m roubles capital increase in December last year, pushing the Bank’s overall capitalization to 1.5bn roubles as a result. Why did the Bank increase its equity and which opportunities came with growth?
Photo: “Bank ”
- Dmitry Leus: A capital increase is always good news for a bank, as it allows us to better meet the requirements and guidelines set forth by the Central Bank of Russia (CBR). Secondly, it gives us room for expansion. For example, CBR Instruction...
The monthly journal “The Banking Review” and the banking portal Banki.ru have spoken with industry experts and collected their forecasts for 2012. Prudence is the dominant mood, but no one is expecting a crash. There is consensus that the regulator and credit institutions have learned their lessons from the past.
Dmitry Leus - Chairman of Bank
For objective reasons, the likelihood of a crisis in Russia is significantly lower than in Europe at present. Our banking system is stronger than before and better prepared to withstand severe shocks to the economy. Overall, the regulator and the banking system are better placed than in 2008 to deal with adverse scenarios.
Banks will certainly be making profits the same way as before. However, the probability of credit defaults and lower margins from securities trading has increased. For 2012, we expect three main risks in...