if you just. live here in moscow top stories now that it's only prepares for the thought of a post and. as its parliament approves a new austerity package intended as a last line of defense against collapsing confidence in it's a column in. the protocol of the occupy movement blossoms in germany as thousands of protesters flood the political and financial capitals of the country and the government rein in corporate and banking greet. the arab league decides to suspend sanction syria in an effort to force the south to stop bloodshed in the country but

the move sparks fears of a western backed repeat of the libyan scenario. i wonder land for travelers terms of high profile discussions of the heads of the asia pacific nations gather in hawaii open to isolate themselves from the spreading euro zone crisis. it's a temperance update for the moment i'll be back with more news for you in less than half an hour from now in the meantime the european debt crisis has shrunk revenues and force banks to cut jobs and beg for bailouts but russia has so far weathered the storm next on our t.v. and if you program spotlights where are going all of talks to the deputy 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 spotlight. i'm out of the novel today my guest on the

show is that i was in. the european debt crisis seven years and forces banks to jobs and bad course. russia it's doing all right but the kind of to say they will have to go through moody's is downgrading the russian banking sector and the ruble is losing its value and all this trouble to russia's biggest banks there's a very back celebrates its anniversary saying it's going to become a transnational company. is it badly while we'll never get any good i always heard that you're going to grow for others who are struggling to survive we're asking all the banks deputies see the. rushes banking burbank turns a hundred and seventy this month through the years has become the largest bank in

eastern europe about half of all russian citizens retail deposits for 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 urban 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 times. hello and welcome to the show thanks for having us thank you very much for being with us so first of all. the one hundred. years that it is. burbank is the only bank that survived the socialist revolution of nine hundred seventeen in the revolution of ninety ninety one so so so so it's been there for it was created by the. eddie qt of eight hundred forty one so it's an institution and it's not

a recluse and as burbank is celebrating will be anniversary the news of the continuing eurozone crisis well is this crisis are these news that we're getting from europe how they are eating any problems any any risks for the russian banking system. directly no. any possible impact for very negative scenarios i thought had 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 volumes of the banking business and. to the credit risk from the banking sector however it is

important to differentiate the russian banking sector has a very specific structure and it is a bank which is anywhere between three to twenty times bigger than the nearest competitor there's the next back of about ten twenty banks which are feeling pretty strong and there's a one hundred institutions which would probably soften. you saying three to twenty times bigger than compared to say you didn't know the figures no i don't have the figures of your competitors suppose 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. but let me get is leaving 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 you know you have plans because you go. international i would say interaction not necessarily global full well let's get back to the problems that we may be facing

as you came into the office earlier we talked about 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 sector not . moody 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 refer to the bank you think 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 my career going to be 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 borrowers maybe. in your view but i don't think it is going to be

universal shock for everyone with big increase in the cost of credit well there are signs that these days russian banking system is going through sort of a liquidity squeeze does it mean that the central bank will be there 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 a systemic duty central bank is to perform is to make sure that the. system is coherent and operates. stable e conditions that the market may weather. pattern 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 me 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 is capable of fine tuning the situation very precisely well you so not semitic you should sound optimistic but. your bank has has raised its deposit rates isn't it a sign of the problem is. that meaning. not necessarily. the. to understand these are directly one has to remember that in the overall context russia and russian savers have been living in an environment of negative for real savings rates and the it just means that we do now are you

really 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. 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 serving 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 means but. this means support to the blacks so do you think there this support will continue. well this means us 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 we are far less making sure that the excess of liquidity that we have got works well and one of our the second and this is the primary reason for that the second reason for that it also indirectly you greece is the 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 bankers have been learning from the west because the system is pretty. poor pretty young to really live and probably twenty years since it has been started to mill we've been seeing what's going on in the west one of the banks never the government's car created to overcome problems so looking at the example of the united states american troops there as a worst case scenario could russian banks be seeking bailouts from the states will

the russian lines 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 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 be sweeter narges we're able to command because we become the lender of last resort and we can choose moody or us again moody's rates depth of spirit bank

eighty three which is the fourth grade and one level above the government those 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 go through theater you know but you also 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're going to 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 me let's. all agree the fundamental conflict competitive advantages of spare bank transcending not only readings but generations and in our strategy is to make the 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 a dead end you should go there will use it well the client is profits yes so disregarding the plant also means this regarding profit i mean you know that is your banker. says that i was in the deputy c.e.o. of the very back spotlight who would be very shortly right out to a break so stay where you are and we'll get back in the. discovery.

communicate with you want to. test yourself and become free. see what nature can give. you free credit take three. four three. three. three. three. young old free volunteer video for your media projects free media r t. welcome back to spotlight i'm old enough and just a reminder that my guests today are in the studio it is. deputy c.

of the burbank the largest bank and russia which is celebrating its one hundredth 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 may be facing problems with these days let's talk about different things let's talk about another perspectives. a you are i know reportedly looking at then he's back in the that turkish are of dexia it's 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 like and their supply this which is pretty quick. again the size is all in relative terms and if you measure it against our own business it is not that significant. character 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 we were all 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 down priorities are domestic and we've been c.i.s. brilliancy as 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 but including turkey i don't think there's any immediate

deal that he's 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. the former soviet countries i've recently been to keep them talking to all towards three people i've heard no interest in thing they said that when ukraine has has. separated after the session from the u.s.s.r. when people went to this bitter custody which was what was better bangkok in all the u.s. sorry a. after after they became independent they told me no no money no war savings everything was taken by russia so your money are in russia and they were pocketing actually backed 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 wasn't true

i don't think so well legally the big bang was the savings bank of the soviet union was split into parts in accordance with the new jersey's dictions the russian parliament the russian and ukrainian current speed. in ukraine belarus like other than everywhere and while the bank back of than i 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 russian government still pays the compensation for lost savings in back in ninety one to the russian citizen who 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 that was the last we'll park and there are usually in very bad so this is not like that but there wasn't much to pocket in the first one single you us well yes you're part of something very strange of all but the money was

pretty much lost by the very bank of the soviet union. universally. so you know i think there's there's a bit of an equitable equitable loss well parts of the soviet society and then it coincide with the fact that the joint out into so it was a separate government so as there are banks head get on good if your boss said that the condition for a for a for this privatization is the price of one hundred roubles for a share for a single shearers burbank's so the question is can bank start reporter should think of its own share in order to reach this goal i don't think it will change investment group if anything from what we hear from the international investors community this position is perceived as a very positive signal. that can only be perceived as opposed to a 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 economic stake in the capital of the burbank overall now this proposition is obviously just parked 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 while you inspire 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 currently is undervalued. whichever way you look at it convert to fundamentals compared to competitive position to anything is not the right time to do it i don't think immediately now it's right and also that 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 procedure so the market dislocation will need to correct itself a little bit first before that happens your boss given the growth said there the condition for the privatization is the price of one hundred rubles for one share so the question here is that you said that you are ready it's booked kids grew backstory represent a sink its shares in order to reach this goal said by growth. well repurchase of our shares buybacks of our shares we have. been considering as one of the tools 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 many pollution and were not. wanting to be seen and to do that so. if you do that nobody will go and no one will know anything any time 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 and all the regulations in all jurisdictions that we're treating. earlier this year you yourself were quoted as saying that you were planning to sue to close to start listing as a burbank of london's 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 food access to trading on london stock exchange and our daily

training 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 cd-r. level ones big bargain z. truck and 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 all the relations as if it was foolish and so for that matter we sort of already there the technicalities as to which at least your run when we consider it later on within the next few months but from the standpoint of an investor we fully tradable anywhere. well young men children only in this interview

mention going global it goes i realise certainly that this anniversary that you're celebrating these days the hundred so the third thing you're holding a conference which is an international conference a global conference where you setting goals until the two thousand and twenty one isn't the only ten years ten years ahead are these plans that chilled discussing 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 is becoming international globality is a much bigger and it would be unwise for us to remove it to come immediately. we will possibly come to that later on but the topic all of the. conference is not necessarily about telling the whole of the world how has been going 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 person x. and 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 was very 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. you can use 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 lobel 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 very interesting. last question. when people from gazprom come here they see we share holders of castro you say i'm

a shareholder of console 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 it's like it's like a 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 to remind that that my guest i'm sure was i'm confident the deputy c.e.o. is very very and that's it for that for all of the spotlight will be back with more uncommon titles was going on in and. until then failed arts and can take as a. from

los angeles to chicago to birmingham twenty trauma centers have closed since two thousand three hundred one is not enough in patient beds not enough urgency

department beds and not enough nurses a man goes there to take care of all the people who are 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 vigil as a firefighter i didn't want to i started out i want to just do firefighting that's about eighty two percent of what we do the florida problem is medical that a rescue couple weeks ago waited four hours for i've waited sometimes three hours i was it's a it's a francis and we went for four hours and fifty minutes letting us all the 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.