Russia - Banking SystemsRussia – Banking
Despite improvements over the last several years, the Russian banking system is still evolving in meeting the capital and credit needs of a growing, more dynamic market economy. However, while the banking services available from Russian banks are still limited compared to what is available in the United States, a company doing business in Russia can access an expanding range of basic services offered by larger commercial banks. The Central Bank has reclaimed operating licenses from nearly 300 banks since it began a banking cleanup in 2013, citing various legal and regulatory violations. While individual investors are covered up to 1.4 million rubles, corporations receive no insurance on deposits, resulting in near total loss of funds in the case of a bank closure. High interest rates on commercial loans pose another challenge; however, the Central Bank of the Russian Federation has significantly reduced rates since 2014. Currently rates are approximately 10-25% from commercial banks and 5%-9% for State-supported loans. One-time equipment leasing deal rates are approximately 10-19%, depending on market conditions and details of a lease agreement.