great. soldier. will. go. if you're just joining us here in our three a very warm welcome here on the headlines now 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 why free trade zone and tackling the syrian and iranian issues. concerns grow with the expanding influence of brussels over e.u. member states. prime ministers based on the support of europe from the people

silvio berlusconi who are set to step down after the final vote is likely to be replaced by former us. israeli forces clashed with palestinian activists protesting the conversation of land for jewish settlements across the west bank the latest round of debate over palestinian statehood with deadlock at the u.n. security council. one of our top stories are about the repercussions of debt it's causing global. spotlight the host will talk to the c.e.o. of russia's biggest bank to find out how safe the country's financial institutions really are.

hello yes and welcome to the stop light the interview show on todd's i'm out of the novel today my guest on the show is clumsy and. the european debt crisis shrinks revenues and forces banks to prod jobs and beg for. brushing back it's doing all right here but economists say they will have to tighten belts to moody's is downgrading the russian banking sector and the ruble is losing its value and all this trouble russia's biggest back was a very bad celebrates its anniversary saying it's going to become a transnational company. that fed little while real news bernie how is burbank going to grow while others are struggling to survive we're asking the banks to deputies see how. russia is banking to actually try burbank terms a hundred seventy this month through the years has become the largest bank in eastern

europe about half of all russian citizens retail deposits their banks rent is worth nearly twelve billion dollars. one of the strongest bank branches in the world instead of a birthday party the company has arranged a conference to figure out its future suburban he's aiming to become a transnational financial institution in the next ten years but it's not that easy the ongoing economic turmoil and financial needs to. leave. the show thanks for having us thank you very much for being with us so first of all it's the one hundred. very brink is the only bank that survived the socialist revolution of nine hundred seventeen then in other. words so so so so it's been there for it was created by the emperor addict of

eight hundred forty one so it's an institution and it's a. recluse and burbank is celebrating the anniversary and the news of the continuing euro zone crisis well is this crisis are these news that we're getting from in europe are they creating any problems any any risks for the russian banking system. directly no. any possible impact for very negative scenarios that side russia. would filter through to the russian banking system only through the russian realtor 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 up it's to the credit risk from the banking sector however it is

important to differentiate that russian banking sector has a very specific structure and it is spreading 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 it is a one hundred institutions which would probably suffer i am like you saying three to twenty times bigger than the computer so you do know the figures no i don't have the figures or your competitor to place that would you want to say no no no i 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 eighteen thousand branches this is too complicated for me. but i think it is leave it here three times bigger than h.s.b.c. globally in terms of number of branches but it's not global yet there is not here you have plans to go. international i would say international global full bloom

let's get back to the problems that we may be facing as you came into office today we talked today about the crisis of two thousand and eight which was enormous do you expect that something similar may happen to the russian medical center i don't think to the russian banking sector no. moody has downgraded russian banking sector recently so what does that mean do you mean that you will rise the curse of borrowing inside the country. when you say you refer 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 overstocking would rather something that is gradual and not as dramatic and therefore maybe. gradual adjustment to the cost of credit for different type of worries 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 there these days russian 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. 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 this system is coherent and operates. stable ie in any conditions that the market mean whether. tightening would rather apply to much closer attention to the quality and stability of particular institutions that are numbers of the system i don't think. this

edition is of various in order to make 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. regulated russia central bank is now very vigilant and is capable of fine tuning the situation very precisely well you so no to mistake you should say to me think that . your bank has has raised its deposit rates isn't it a sign of the problem is i have a liquidity squeeze everything. not necessarily. the. to understand these are directly one has to remember that in the overall context russia and most and savers have been living in an environment of negative real savings rate and. it just means that we do now our bureau

to. keep and keep the rates in line with what's going in the oral interest rate environment in the country yes the rates have gone up somewhat but i don't think the changes that we are 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 counter the funding squeeze providing three knowing servant billion rubles which is thirteen billion us two lenders in overnight ripper a chase options i looked there were twenty well i don't really know what that mean means but. this means support to the tracks so do you think there is this support will continue. well this means ass being an active market maker in a report market which is from the standpoint of our risk capital fits perception

because it actually is the least risky way of for us making sure the excess of liquidity that we have got works well and areas of money while the second and this is the primary reason for that the second reason for that it also indirectly you 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 the single banking sector will probably be because back in the world well the russian very curious have been learning from the west because the system is pretty. poor pretty young greenlit and only twenty years until it has been started to know. we've been seeing what's going on in the west how the banks know the government's corporator to overcome problems so looking at the example of the united states american trees as

a worst case scenario could russian banks be seeking bailouts from the states will the russian banks be doing that what do you think both 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 one can never rule this out this is all extremely unlikely to happen just because our operations are actually in reverse the worse the environment. the more excessive liquidity we get because we've become the safety haven't and the more margins were able to the sweeter narges were able to command because we've become the lender of last resort and we can choose movie once again luisa rates debt troubles very bank eighty three which is the fourth

grade and one level above the government does that mean there. will be and renewing and reviewing its business policy. for what purpose for the purpose of technically following in the ratings i don't think so we 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 we do is what you do i know you do but we do care about the ratings but i think. going as far as saying oh you change your strategy for the sake of all three improving your aging would be a good and obvious like likely less. than an obvious truth all of the fundamental conflict 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 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 or any fact financial. barometer alone. disregarding your client is down you should go there will use them well the client is profits yes so disregarding the plan also means this regarding profits i mean you know that you see a bank that says. deputy c.e.o. of the drug spotlight who would be back shortly right out to a break so stay where you are and we'll be back in the same.

from los angeles to chicago to birmingham twenty trauma centers of close since two thousand supermom is not enough in-patient beds not enough department beds and not enough nurses a man goes there just to take care of all the people who know her not the only real health care system that we have in the city of los angeles is the los angeles fire department in fact when i started my venture is a firefighter i didn't want to be around so i started out wanting just to firefighting it's about eighty two percent of what we do the fire departments medical but we had to rescue couple we still waited four hours for a bit i've waited sometimes three hours but i was it's

a same francis and living with her for hours and fifty minutes staring at a wall of patients and we have a federal law that mandates that if you can't turn no one away who seeks care in an emergency room. we have the most expensive health care system in the world and it's probably valued the least. welcome back to spotlight imo going over and just through more of that my guest today is the studio is. obvious the birthday of the lodge is back and russia which is celebrating its. one hundred and seventy per day on the twelfth of november. we talked about about problems no aggression 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 or i know reportedly looking at then is bank of the turkish arm of dexie has a pretty large bank in turkey and you want to see it as a potential acquisition targets so what are the conditions for you to start buying i could innocent like this which is pretty. big and the size is all in relative terms and 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. particular. focus on a specific target be that knees or anything at this moment. we.

overall answering your 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 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.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 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 careful well you

mentioned the c.i.s. the the former soviet countries have recently been turkey have been talking to people i've heard the interesting thing they said that when ukraine has. separated after secession from the u.s.s.r. when people went to this bigger cast that which was what was better bangkok in over a year is only a. after after they became independent there told me no no no money no our savings everything was taken by russia so your money are in russia and they were pocketed actually by by moscow and that was that was reportedly seventy billion u.s. dollars what this was every good propaganda thing of course but what it was a true i don't think so well legally the big bang of the savings bank of the soviet union was split into parts in accordance with the new jersey's dictions the russian part went to russia the ukrainian stayed. in ukraine belarus like rather

than everywhere and well 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 you know the russian government still plays the compensation for lost savings in back in ninety one through the russians it was about my last two i think your family lost two birds the difference is that we lost to our own government and the ukrainians feel that what they lost will pocketed by usually put in very very so this is not a trick that you know that there wasn't much to pocket for seventeen billion us well yes you pocket something that expendable but the money was pretty much lost by the bank of the soviet union. universally. so you know i think there's there's

a bit of an equitable equitable loss by all parts of the saudi society and it coincided with the fact that the joint out into so it was a separate government so as there are various head gear with said that the condition for a four for one is privatization is the price of one hundred roubles for a share for a single shooters burbank's 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 opposed to signal from the standpoint that investors now trust it's very very competitive and flexible enough to not be dependent on any state help or any state support or economic stake in the capital of this birdbrain overall now this proposition is obviously just the park

it's bringing the gun 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're stuck 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 currently is very bank is undervalued. but 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 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 this location

will need to correct itself a little bit but before that happens your boss said give me a graph there 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're ready it's but kids grew back story to represent a saying its shares in order to try to reach this goal said by growth. not repurchase of our shares buybacks of our sirius 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 privatisation 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 there then no group will know any anytime that's preventing 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 all the regulations in order is the action that we're treating. earlier this year you yourself were quoted as saying that you're planning to to start listing as a very bank on the london sky 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 on 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 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 country and you have c.d.r. level ones big part in the trial the international trading platform and of course the big part 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 order of glaciers as if it was for listed so for that matter we sort of already there the technicalities as to which least you ron 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 earlier in this interview mention going global it goes i realise certainly that there's only very street that you're celebrating these days hundred thirty berg 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 only ten years ten years ahead are these plans that should discussing this are they really are globalizing a 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 as becoming international globality is a much bigger 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. overall 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 post maximum possible 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 bank 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 that crowdsourcing exercise 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 we're interested. the first question. when people from gazprom come here they see we're shareholders of gaspar you say i'm a shareholder of spirit going so in software does that mean that being in the finals 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 trust. because it's like it's like religion both 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 a reminder that my guest i'm sure was i'm content i'm seen deputy c.e.o. of the service and that's it for all of the spotlight will be back with more on carbon fiber what's going on then and. until then stay on r.t. and take as.

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