right and if you live by phone from phones to. start on t.v. don't come. back here with r.t. here's a look at the top stories leaders of the biggest pacific rim economies meeting in hawaii pledged to prevent the european debt crisis from spreading to the region among other issues to dominate the gathering are establishing a pacific wide free trade zone and tackling the syrian and iranian issue. concerns growing spanning influence of brussels over e.u. member states as resent out italy to choose prime ministers based on the support of europe not the people so liberals going who is said to step down after the file

a series vote cycle to be replaced by former europe mario monti. israeli forces clashed with palestinian activists protesting against the confiscation of land for jewish settlements across the west bank that has the latest round of bait over palestinian statehood bid with deadlock at the un security council. and returning to our top story the repercussions of eurozone debt are causing global concern next on our interviews show spotlight going off talks to the c.e.o. of russia's biggest bank to find out how safe the country's financial institutions are stay with us. oh yes and welcome to the spotlight the interview show on time out the novel today

my guest on the show is kind of the. the european debt crisis shrinks revenues and forces banks to come jobs and bad for. russia but it's doing all right yet but economists say they will have to thousand votes to moody's is downgrading the russian banking sector and the ruble is losing its value all this trouble to russia's biggest banks there's a very bad celebrates its anniversary saying it's going to become a translational company. that had lain while we were there and how is her bank going to grow for others who are struggling to survive we're asking the banks to deputies say. russia's banking flagship her bank turns a hundred seventy this month through the years has become the largest bank in eastern europe to about half of all russian citizens retailed represents our backs

brand is worth nearly twelve billion dollars which makes it one of the strongest banking brands in the world instead of a birthday party the company has arranged a conference to figure out its future urban he's aiming to become a trans national financial institution in the next ten years but it's not very easy to go in economic turmoil and financial system. hello and welcome to the show thanks for having us thank you very much for being with us so first of all congratulations it's the one hundred. years that it is. burbank is the only graphic that survives the socialist revolution of writing seventeen in the revolution no i didn't you were so so so so it's it's been there for i was greeted by the. editor of eighteen forty one

so it's an institution and it's a. recluse and as burbank is celebrating the anniversary the news of the continuing euro zone crisis well is this crisis are these news that we're getting for in europe are they creating any problems any any risks for the russian banking system. directly no. any possible impact for very negative scenarios outside russia. would filter through to the russian banking system only through the russian real sector and it is largely through the overall economic activity of the corporate sector and therefore the consumer. which may experience some slowdown that would in fact both the volumes of the banking business and. the appetite to the great interest from the banking sector however it is important to differentiate the russian banking sector has

a very specific structure and is spreading which is anywhere between three to twenty times bigger than the nearest competitor there's the next back about ten twenty banks which are feeling pretty strong and then there's a one hundred institutions which would probably soften. you seeing three to twenty times bigger than compared to say you don't know the figures no i don't have the figures or your competitor plays that would you want to say no no no it depends upon what you look at you for if it's by assets then it's three times bigger if it's by branch network we've got eighteen thousand branches this is too complicated for me but let me get is leaving here three times bigger than h.s.b.c. globally in terms of number of branches what is the global you're building is not an yeah phones becoming. international i would say international not necessarily global full bloom let's get back to the problems that we may be facing as you came into office neil talked about the crisis of two thousand and eight which was

enormous do you expect that something similar may happen to the russian making sector i don't think to the russian banking side no. movie has that way did russian banking sector recently so what does it mean do you mean that you will rise the cost of borrowing inside the country. when you say you you for him to make you think about banking sector the cost of borrowing is driven mostly by by the level of risk and again we sense that any possible slowdown to the russian microeconomic would not be over shocking. rather something that is gradual and not as dramatic and therefore maybe. gradual adjustment to the cost of credit for different type of borers maybe. you but i don't think it is going to be universal shock for everyone with

a big increase in the cost of credit well there are signs that said these days banking system is going through sort of a liquidity squeeze does it mean that the central bank will be tightening its monthly policy in the near future but. central with respect to the monetary policy and liquidity in the banking sector not necessarily tightening what systemic duty the central bank is to perform is to make sure that. the system is coherent and operates. stable e conditions that the market mean whether. whilst tightening would rather apply to much closer attention to the quality and stability of particular institutions that are members of the system i don't think. the situation is of is very similar to the me this time the regulator has

a very. diverse set of instruments to support systemically community that had been used and tested in two thousand and eight and i quite successfully. regulated russia central bank is now very vigilant and is capable of fine tuning the situation very precisely well you so not to be sick you should sound optimistic but . your bank has has raised its deposit rates isn't it a sign our problem is however the quickly said meaning. not necessarily. the. to understand the sugar actually one has to remember that in the overall context russia and most and savers have been living in an environment of negative for real savings rates and. it just means that we do now our bureau to. keep and keep the rates in line with what's going in the overall interest rate

environment in the country yes the rates have gone up somewhat but i don't think the changes that we are doing a dramatic on the backdrop of the cuts in the rates of the banking sector have done in the preceding two years we read in the press that the central bank has boosted measures to counter the funding squeeze providing three knowing servant billion rubles which is thirteen billion us two lenders in overnight reproach chase options i looked at which one well i don't really know what that mean is what. this means support to the blacks so do you think that this support will continue. well this means ass being an active market maker in report market which is from the standpoint of our risk capital it fits the perception very well because it actually is the least risky and we are for us making sure that the excessively we do that we

have got works well and areas as well and second and this is the primary reason for that the second reason for that it also indirectly greece's liquidity in the banking sector and this is where our commercial interest coincides with the benefit of the overall market which is very often the true because simply in terms of all relative size to single economy in the civil banking sector we're probably the biggest bank in the world. the russian bankers have been learning from the west because the system is pretty. poor pretty young english and over twenty years since it has been started to melt we've been seeing what's going on in the west one of the banks there are the government's car created to overcome problems so looking at the example of the united states and other countries as a worst case scenario could russian banks be seeking bailouts from the states will

the russian banks be doing that where you think well some of them may have and we've seen that back in two thousand and eight and two thousand and nine i think the russian banking sector one doth not as heavily damaged by the crisis as it could have. and as compared to the banking sectors in the west and definitely as compared to what is going now in europe so one can never rule this out this is all extremely unlikely to happen because our operations are actually in reverse the worse the environment. the more excessive liquidity we get because we will become the safety haven't and the more margins were able to the the sweeter narges we're able to command because we've become the lender of last resort and we can choose moody or us again moody's rates dept of the bank eighty three which is the fourth lowest investment grade and one level above the government there is that mean that

is very banks will be renewing and reviewing its business policy. for what purpose for the purpose of technically following in the ratings i don't think so we also if you all see we don't care about ratings i think even the prime minister said we don't care what we do know as we do i know you do you do care about the ratings but i think. going as far as saying oh you change your strategy for the sake of improving your rating would be a bit and obviously like blackmail it is it's a bit of an enormous truth all of the fundamental conflict competitive advantages of spreading transcending not only ratings but generations and it is our strategy is to make the most of them commercially and one side but on the other say not to forget that it is satisfying the needs of the clients the briggs's the profits and

you know working exclusively for profits ratings are really fact financial parameter alone. disregarding your client is a dead end you should go there all or use it well the client is profits yes so this regarding the plant also means this regarding profits i mean you know that you see a banker. says the cut i was the deputy c.e.o. of the very bad spot right there would be back shortly right i'll clear a break so stay where you are and we'll get back in the. the close up team has been to the region where technological breakthroughs save human lives. now are she goes to the see the for.

her unusual ways to protect nature a. place where farming pioneers place local cuisine to the highest pitch plays and where future developments depends on a great book russia's black sea coast russia close up on our city. and discover its beauty. communicate with the wild. test yourself and become free to. see what nature can give you.

a very warm welcome to you this is your news today protesters on the walls streets play at. least in chance a good chance to choose to get the status of the human experiment just sitting with thirty weeks you'll probably see this rap music in which it snows moving slowly trying to sleep sensibly economy and it's on changelings us financial temple the reason to me to you know confidence in markets and beyond wants to be easing trade imbalances recession looks to be missions close to collapsing you supply clothes food clothes clothes. some fails we pull a box again feelable thing is us crash seven smashed ceiling changelings this is like putting it in a closet and streets be on the trail just programs increase the total economy.

welcome back to spotlight i'm no good lovin just a reminder that my guest today is the studio is. the c.e.o. of suburbia the largest taken russia which is celebrating its. one hundred and seventy per day on the twelfth of november and we talked about the problems that russian banking system may be facing world banks all over the world may be facing probably these days let's talk about different things let's talk about about the perspectives. you are i know reportedly looking at then these bank of the turkish are dexie it's a pretty large bank in turkey then you want to see it as a potential acquisition targets so what are the conditions for you to start

buying like innocent like this which is pretty big. again the size is all in relative terms that we can measure it against our own business it is not that significant. target specifically is an interesting market for us we don't think we have a. particular. focus on a specific target be that the knees or anything at this moment. we. overall answering your broader part of your question we are all think about our international expansion in the context that. it is something that will be fundamentally fundamental to a future in seven ten fifteen years rather than something that is that is very urgent today because strategically for us our top ten priorities are domestic and we've been c.i.s. within c.s. well represented already. so it is rather thinking about the future growth

prospects of burbank but we are looking at markets like china india eastern europe and that region broken bottle including turkey i don't think there's any immediate deal that is right on the table with concrete negotiations at the moment. but the also means that we will continue to look at those markets carefully well you mentioned the c.i.s. so they are the former soviet countries i've recently been to kiev and talking to all jordan people i've heard the interesting thing they said that when ukraine has . separated the secession from the years the summer when people went to this bureaucrats sack which was what was going to bangkok in the very year is only a. after after they became independent that's all we know no more money no more

savings everything was taken by russia so your money are in russia and they were pocketed actually backed by moscow and that was that was reportedly seventy billion u.s. dollars well this was a very good propaganda thing of course but what about wasn't true i don't think so well legally the big bank of the savings bank of the soviet union was split into parts in accordance with the new jurisdictions the russian parliament to russia the ukrainian your state. in ukraine belarus like other than everywhere and while the bank back of van. wasn't particularly well capitalized and liquid and there were some savings lost back in the big depreciation of the of the of the currency in the early ninety's so everyone lost russian government still plays in compensation for lost savings in back in ninety one through the russian citizen you know it was about my last two i think your

family lost two but the france is that we lost to our own government and the ukrainians feel that that was the last word park it was a huge event in very bad so this is the track that know that there wasn't much to pocket in the for seventeen billion us well yes you pocket something very strange of all but the money was pretty much lost by the bank of the soviet union. universally. so i think there's there's a bit of an accolade to equitable loss mold parts of the saudi society and then it coincided with the fact that the turned out into service to separate governments so this is their various head given to theodore said that the condition for for for this privatisation is the price of a hundred roubles for a share for a single sure of burbank so the question is can this burbank start repairing our own share in order to reach this goal i don't think it will change investment grade

if anything from what we hear from the international investors community this privatisation is perceived as a very positive signal. that can only be perceived as a positive signal from the standpoint that investors now trust that it's very competitive and flexible enough to not be dependent on any state help or any state support or economic stake in the capital of the bank overall now this provision is obviously just a part it's bringing this to down from p.p. seven point six percent to fifty percent plus one share. which is. large ish in absolute size but in relative terms of the market represents just a few trading days while you are in spare bank stock so the timing. as to when it will happen the answer is very simple when the pricing gets back to the sensible

level because clearly apparently is where bank is undervalued. but whichever way you look at it compared to fundamentals compared to competitive position the only thing is that the right time to do it i don't think immediately now it's the right thing and also the selling shareholder and i'm a shareholder as well would obviously find it irrational to sell now at a price that is you know about eighty rubles today as we speak when just two three months ago it was above one hundred rubles pressure so the market dislocation will need to correct itself a little bit first before that happens your boss very very given a graph or said there the condition for the privatisation is the price of one hundred roubles for one share so the question here is that you said that you are ready it's booked kids brought back story to represent a saying its shares in order to to reach this goal said by growth. well repurchase

of our shares buybacks of our shares we have. been considering as one of the two to manage our own capital we are somewhat excessively capitalized at the moment but we haven't considered this for the purpose of influencing the stock price in preparation for. the privatization because that would have been called manipulation and we're not wanting to be seen and to do that so. if you do that nobody will go that no we'll move all you know anything any time there's verbeck and i want to consider this it will do it in the most transparent and appropriate manner as required by all the exchanges but we're listed in and all the regulations in order is the action that we're trading. oh they have this here you yourself were quoted as saying that you were planning to sue to include to

start listing as burbank on the london stock exchange are you still planning that and then how's it going well for all intents and purposes since first of july this year will really our stock already has full access to trading and london stock exchange and our daily trading volumes in london are now. you know one hundred or sometimes more million dollars a day our total dri daily tree volumes are around five six hundred million dollars of which a big part is in london big parties in fact for frankfurt big parties in over the country usa your little ones big part in the truck the international trading platform and of course the big part in the local domestic market so. admission to trade in all those exchanges and marketplaces requires the company to be pretty much as transparent as well governed as compliant with all the regulations as if it was foolish so for that matter we sort of already there the technicalities as to

which least you run with me consider a bit later on within the next few months but from the standpoint of an investor who fully tradeable anywhere. well you mentioned early in this interview mention going global it goes i realize certainly that this is only very free you're celebrating these days now did so good verdict you're holding a conference which is an international conference a global conference where you setting goals until the two thousand and twenty one years of the ten years ten years ahead are these plans that chill discussing this are they really low ball ising or bank of really becoming becoming a world bank well our key driver is the success for both our clients and our investors it definitely means us becoming international globality is a much bigger term and it would be unwise for us to dream of it to come immediately

. we will possibly come to that later on but the topic all of the. of our conference is not necessarily about telling the whole of the world housebreak is going to become global now we are embracing the new concept of crowdsourcing and we want to run a number of projects to use crowdsourcing to the most if not impossible effect and to show the results of this project of what the crowdsourcing can produce as possible solutions and directions for russia as the marketplace burbank as. a bank it striving to become one of the best in the world doesn't equal global but one of the best in the world. includes international and how to make russian market a very attractive place so the results of the crowdsourcing exercise try to find

those directions and solutions are going to be presented to the lobel economic community on our conference and i think this this is something new that no one has done before and it will be very interesting. first question. when people from grass proclaim here they see where shareholders of kasparov you say i'm a shareholder of spirit console and so forth does that mean that being in the finance business. putting your money into someone it isn't i mean it's it's not a matter of business it's a matter of of trust. because it's like it's like a religion of religion. it is it is rather trust into something that you also very know very much both scientifically and. for me so thank you thank you very much for being with us today and just to remind us that my guest i'm sure was i'm content is the deputy c.e.o. of this very bank and that's it for the. spotlight will be back with more on common

cause that's going on in and. until then stay on r.t. and take as.

and.