haitian of land for jewish settlements across the west bank is 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 euro zone debt are causing global concern next on their t.'s interview 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. welcome to the spotlight. today my guest on the show is. the european. banks. and.

it's doing all right but economists say they will have to. do the russian banking sector and the ruble is losing its value all this trouble russia's biggest bank there's a very bad celebrates its anniversary saying it's going to become a transnational company. how is her going to grow. are struggling to survive we're asking all the banks to. russia's banking burbank terms of how this month through the years has become the largest bank in eastern europe about half of all russian citizens retail deficit are banks 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 he's aiming to become a trans national financial institution in the next ten years but it's. the. turmoil and financial system. thanks for having us thank you very much for being with us so first of all think it's the one hundred. burbank is the only bank that survived the socialist revolution of nine hundred seventeen then another revolution that no i didn't you were so so so was so it's been there forever yeah it was created by the. addict of eighteen forty one so it's an institution and it sounds. good listen as burbank is celebrating the anniversary and the news of the continuing eurozone 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 know. any possible impact for very negative scenarios outside russia. would filter through to the russian banking system only through the russian real sector it is largely through the overall economic activity of the corporate sector and for the consumer. which may experience some slowdown that would in fact both volumes of the banking business and. the appetite to the credit risk from the banking sector however it is important to differentiate that russian banking sector has a very specific structure and there is a spare bank which is anywhere between three to twenty times bigger than the nearest competitor is the next back about ten twenty banks which are feeling pretty

strong and then there is a one hundred institutions which would probably soften i say i like you seeing three to twenty times bigger than the computer so you don't know the figures no i don't have the figures or your competitor to place that would you want to say no no no it depends upon upon what you look at if it's by assets then it's three times bigger if it's by branch network we've got eight hundred thousand branches this is too complicated for me so. let me get is leaving here three times bigger than h.s.b.c. globally in terms of number of branches but as the global you make is important you have plans becoming global. international i would say international monetary global full bloom let's get back to the problems that we may be facing as you came into the office today we talked about about the crisis of two thousand and eight which was enormous do you expect that something similar may have happened to the russian making seat i don't think to the russian banking sector no. movie has downgraded 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 referred to the bank you said about banking sector the cost of borrowing is driven mostly by by the level of risk again we sense that any possible slowdown to the russian market economy would not be over shocking value but rather something that is gradual and not as dramatic and therefore maybe some gradual adjustment to the cost of credit for different type of borrowers maybe. in your view 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 say these days russia the 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 well. central with respect to the monetary policy and liquidity in the banking sector not necessarily tightening what systemic duty central bank is to perform is to make sure that the. system is coherent and operates. stable e in any conditions that the market may weather. that whilst dighton ing 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. this edition is of is very similar to two thousand and eight this time the regulator has a very. diverse set of instruments to support systemically quiddity that have been used and tested in two thousand and eight and nine quite successfully and the

regulator in russia central bank is now very vigilant and he's capable of fine tuning the situation very precisely well you sir not to mistake you should so have to mistake but as burbank your bank has has raised its deposit rates isn't it a sign of the problem is however quickly that i mean. not necessarily. the . to understand the issue directly one has to remember that in the overall context russia and russian savers have been living in an environment of negative real savings rate and the it just means that we do now our bureau lee to. keep him 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 that the changes that we're doing at that dramatic on the backdrop of the cuts in

the rates that the banking sector have done in the preceding two years we read in the press that the central bank has boosted measures to current to the funding squeeze providing three knowing servan billion rubles which is thirteen billion us two lenders in overnight reproach chase auctions i looked at which works well i don't really know what that mean means but. this means support to the backs so do you think that this support will continue. well this means us being an active market maker in a report market which is from the standpoint of our risk appetite fits banks perception very well because it actually is the least risky way for us making sure that the excessive liquidity that we have got works well and earns us money well the second and this is the primary reason for that the second reason for that it also indirectly increases 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 single banking sector we're probably the biggest bank in the world well the russian bankers have been learning from the west because the system is pretty. pretty young in the lead and so. twenty years since it has been started to melt we've been seeing what's going on in the west how the banks there are the government's car prated to overcome problems so looking at the example of the united states american cheese has a worst case scenario could russian banks be seeking bailouts from the states will the russian banks be doing that what do you think well some of them may have and we've seen that back in two thousand eight hundred thousand nine i think the russian banking sector went off 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 but you one can never rule this out this will extremely unlikely to happen because our operation is actually in reverse the worse the environment. the more excessive liquidity we get because we would become the safety haven't and the more margins were able to the sweeter margins were able to command because we've become the lender of last resort and we can choose moody once again moody's rates dept jobs burbank eighty three which is the fourth lowest investment grade and one level above the government does that mean that it's very bank will be renewing and reviewing its business policy. for what purpose for the purpose of

technically following any ratings i don't think so we will look at you i don't know but you all see we don't care about ratings i think even the prime minister said we don't care what no we do is we do i know you do we 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 over like like me like. it better not was true volatile the fundamental can competitive advantages of spare bank transcending and not only ratings but generations and it is our strategy is to make the most of them commercially on one side but on the other side 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 or any fact financial parameter alone disregarding your client is dead and you should go there or reason well the client is profits

yes so disregarding the client also means this regarding profit exactly you know doctors the bank. says the cut i was in deputy c.e.o. of the bag spotlight who would be back shortly right out to a break so stay where you are and we'll be back in the. the close up team has been to the region where technological breakthroughs save human lives. now archie goes to the sea. where unusual ways to protect nature are. where farming pioneers place local cuisine to the highest pitch. and where future developments depend on

the way. russia's black sea coast commercial close up on our t.v. . and discover its beauty. communicate with the wild and. test yourself and become free. see what nature can give you. a very warm welcome to you this is your news today protesters on holds true today at. least in canceling your chance to choose instead to get booked for exactly the status of the human

experiment is exploding with. this you will see this right means what it goes to the movies allegedly trying to make sense of global economy and it's on changelings us financial template the research clambering to maintain our confidence in markets and. wants to be seen trade imbalances recession look keep the nations close to collapsing and some like loan foreclosed homes. to fail switchblade banks again sealevel might think it's a us crash and imminent smash the ceiling is like putting it in the closet and streaks the i.m.f. construction on just programs increase the total economy. welcome back to spotlight imo good lovin just

a reminder that my guest today in the studio is. deputy c.e.o. of the burbank the largest bank and russia which is celebrating its. one hundred seventy birthday on the twelfth of november. we talked about about problems that the russian banking system may be facing world banks all over the world maybe facing problems 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 arm of dexie it's a pretty large bank in turkey and you want to see it as a potential acquisition target so what are the conditions for you to start buying like and that's it like this which is pretty big. again the size is all in relative terms if you measure it against our own business it is not that significant. specifically is an interesting market for us we don't think we

have a. particular. focus on a specific target be that news or anything at this moment. we. overall broader part of your question will rule think about our international expansion in the context that. it is something that will be fundamentally fundamental to our future in seven ten fifteen years rather than something that is that is very urgent today because strategically for us our top priorities are domestic and within c.i.s. within c.i.s. well represented already. so it is rather thinking about the future growth prospects of burbank that we are looking at markets like china india eastern europe and that region bargain 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. or the former soviet countries i've recently been to kiev and talking to all toward really people i've heard the interesting thing they said that when ukraine has has. separated society after the session from the u.s.s.r. when people went to this better class that which was what was better bank called in the very recently a. after or after they became independent there will be no no more money no war 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 of what wasn't true i don't think so well legally the big bank of big savings bank of the soviet union was split into parts in accordance with the new jurisdictions the russian part went to russia the ukrainian stayed in. in ukraine belarus like other than everywhere and while the bank back than. 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 pays the compensation for lost savings and back in ninety one to the russian citizen you know what was about my last two i think your family lost too but the difference is that we lost to our own government and the ukrainians feel that what they lost were pocketed by a huge and lives very very so this is not to know that there wasn't much to pocket

in the first one hundred billion us well yes you pocket some things that extend to all but the money was pretty much lost by the bank of the soviet union. universally. so you know but i think there's there's a bit of an actor to equitable loss while parts of the soviet society and it going sided with the fact that the joint out into so it was a separate government so this is burbank's head get a real good if your boss said that the condition for or for or for this privatization is at the price of one hundred roubles for a share for a single shares burbank's so the question is can this burbank start rip out of its own share in order to reach this goal i don't think it will change investment if anything from what we hear from the international investors community this privatization is perceived as a very positive signal. that can only be perceived as opposed to signal from the

standpoint that investors now trust is competitive and flexible enough to not be dependent on any state help or any state support or an economic stake in the capital of this burbank overall now this proposition is obviously just a part of it's bringing this dig down from fifty 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 in burbank 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 current is very bank is undervalued. whichever way you look at it compared to fundamentals compared to competitive position to anything is not the right time to do it i don't think immediately now it's the right day 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 roubles percent so the market dislocation will need to correct itself a little bit first before that happens your boss a bit of banks have given a graph has said that the condition for the privatization is the price of one hundred roubles for one share so the question here is that you said that you are ready it's but kills brubeck's star it represents a sing it so shares in order to to reach this goal set 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 to do that so. if you do that nobody will know that no one will know anything any time there's been a bank my want to consider this it will do it in the most transparent and appropriate manner as required by all the exchanges the listed in and all the regulations in all jurisdictions that were trading. earlier this year you yourself were quoted as saying that you're planning to to to to to start listing burbank on the london sky stock exchange are you still planning that and then how is it going well for all intents and purposes since first of july this year will really our stock already has food access to trading on london stock exchange and our daily training volumes

in london are now. you know hundred or sometimes more million dollars a day our total daily trading volumes are around five six hundred million dollars of which a big part is in london big parties and frack for frankfurt big parties in over the counter u.s. a.d.r. level ones big barged in zip through the international trading platform and of course the big board in local domestic markets 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 older elations as if it was foolish to so for that matter we sort of already there the technicalities as to which least you're wrong we may 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 events i realize certainly that this anniversary that you're celebrating these days the hundred seventy birthday you're holding a conference which is an international conference a global conference where you setting goals and so the two thousand and twenty one isn't the ten years ten years ahead are these plans that your discussing and this are they really globalizing a bank of really becoming becoming the 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 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 postmarked 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 market place for the very bank as. a bank it is 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 that crowdsourcing exorcised try to find those directions and solutions are going to be presented to the global economic community on our conference and i think this this is something new that no one has done at this scale before and that could be very interesting. last question. when

people from gazprom come here they say we're shareholders of gazprom you say i'm a shareholder of spirit bank and so and so forth does that mean that being in the finance business. putting your money into somewhere it isn't i mean it's it's not a matter of business it's a matter of of trust of course of course it's like it's like a religion of religion. it is it is rather trust into something that you also know very much both scientifically. for me so thank you thank you very much for being with us today and just to remind you that my guest on the show was on call on crime scene deputy c.e.o. this is very very sad that since but all of the spotlight will be back with more on carbon fiber what's going on in and. until then stay on r.t. and take as.

beers are the biggest specific agreement connelly's meeting in hawaii a pledge to prevent the european debt crisis from spreading to the region and triggering another a global recession. and while some euro zone hopes for a rescue play with china recent polls suggest u.s. attitudes to the asian giant are growing increasingly hostile also. we're seeing really a very ugly develop. with people a big issue because they serve the interests of the demands of the european union. concern at the growing influence of brussels over each member states as greece and now italy look to choose prime ministers based on the support of europe not the people. at.