The latest shakes and seizures of Russian banking system is all about the collapse of the “Yugra” commercial bank. But the tendency is quite obvious – we are eye-witnessing the rapid deterioration of private banking in Russia. As a result only the state-ruled banks and probably “Alfa-Bank” will stay afloat. Three to four major banks will be totally enough for the Russian Federation. One of the banks which are doomed to collapse is Vadim Belyaev’s “Otkritie”.
About the Vadim Belyaev’s “Otkrytie” roots
Despite a relatively young age “Otkritie” is entirely formed under the pre-Putin administrative gang. It is based on the purchase of “Schit” bank in 2007. The history of the “Otkrytie” bank is well described here. It is formed by late Boris Nemtsov, Vadim Belyaev, Boris Minz, and Anatoly Chubais. Some other well known founders are VTB Bank and Alexander Mamut. “Otkrytie” was grown up from the very local bank to the seventh biggest bank of Russia by acquisition of often bigger banks – for example “Petrokommerz” and “Nomos” were bigger than the “Otkrytie” at the time of acquisition.
What are the problems with “Otkritie”
Financial analytics warned that the next big failure after “Yugra” may be Vadim Belyaev “Otkrytie” bank. They come to this conclusion while taking into account the prevailing trend for gradual credit quality decline. At least 15% of the credits given by “Otkrytie” is now 90 days or more overdue. The data is compiled at the end of 2016 and there are no reasons to believe that something have changed in 2017. Because it is widely known that the majority of credits are given to… commercial structures of the founders. According to some data some of these credits were even written off on suspiciously terms.
Based on these facts the “Otkryrie” ratings were downgraded to lowest grades among the Top-20 Russian banks. It will not allow to attract the easy money from the pension funds and governmental agencies, unless manually overridden by nursing hand from Central Bank of Russia. There rumors are that Elvira Nabibulina is just the right person for that case.