Russian Federation Financial Sector Assessment Program : Role of State in Financial Services
State-owned financial institutions fall into three main groups: commercial banks, hybrid banks, and development institutions. The larger state-owned commercial banks/ groups include Sberbank, the VTB Bank group, and Gazprombank. Like private commer...
| Main Authors: | , |
|---|---|
| Format: | Report |
| Language: | English en_US |
| Published: |
World Bank, Washington, DC
2016
|
| Subjects: | |
| Online Access: | http://documents.worldbank.org/curated/en/2016/08/26739419/russian-federation-financial-sector-assessment-program-technical-note-role-state-financial-services http://hdl.handle.net/10986/25067 |
| id |
okr-10986-25067 |
|---|---|
| recordtype |
oai_dc |
| spelling |
okr-10986-250672021-05-25T08:51:30Z Russian Federation Financial Sector Assessment Program : Role of State in Financial Services World Bank International Monetary Fund banking sector state intervention state-owned enterprises ownership director functions board of directors disclosure transparency auditing risk management state-owned banks State-owned financial institutions fall into three main groups: commercial banks, hybrid banks, and development institutions. The larger state-owned commercial banks/ groups include Sberbank, the VTB Bank group, and Gazprombank. Like private commercial banks, these institutions do not have a policy mandate and are profit maximizing, and target similar market segments. The main state hybrid bank is the Russian Agricultural Bank (RAB), which has a policy mandate to focus on agribusiness, while also engaging in broader commercial banking activities. The principal state development institution is the VEB group, which has a broad policy mandate, subject to a legal obligation not to compete with commercial credit institutions. It on-lends or directly lends to firms, but does not collect retail deposits.1 There are also several smaller state-owned banks that primarily engage in commercial activities and are owned by sub-national entities. The authorities should continue pursuing the gradual privatization of state-owned commercial banks, as economic conditions permit. There may be benefits to revisiting the role and structure of the state hybrid and development institutions, with corporate governance reforms being a priority.State-owned financial institutions should not be used to bail out struggling commercial banks. In other respects, the administration of financial subsidies appears to follow a number of good principles, although coordination could be improved. There have been many positive changes in the corporate governance of state-owned banks in recent years. reform of the current ownership structure could support the spread of good corporate governance practices. The composition and functioning of many SOB boards is an area that requires attention. Finally, SOB lending to SOEs should be conducted on an arm’s length basis and on commercial terms. 2016-09-13T21:01:42Z 2016-09-13T21:01:42Z 2016-07 Report http://documents.worldbank.org/curated/en/2016/08/26739419/russian-federation-financial-sector-assessment-program-technical-note-role-state-financial-services http://hdl.handle.net/10986/25067 English en_US CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank World Bank, Washington, DC Economic & Sector Work Economic & Sector Work :: Financial Sector Assessment Program Europe and Central Asia Russian Federation |
| repository_type |
Digital Repository |
| institution_category |
Foreign Institution |
| institution |
Digital Repositories |
| building |
World Bank Open Knowledge Repository |
| collection |
World Bank |
| language |
English en_US |
| topic |
banking sector state intervention state-owned enterprises ownership director functions board of directors disclosure transparency auditing risk management state-owned banks |
| spellingShingle |
banking sector state intervention state-owned enterprises ownership director functions board of directors disclosure transparency auditing risk management state-owned banks World Bank International Monetary Fund Russian Federation Financial Sector Assessment Program : Role of State in Financial Services |
| geographic_facet |
Europe and Central Asia Russian Federation |
| description |
State-owned financial institutions fall
into three main groups: commercial banks, hybrid banks, and
development institutions. The larger state-owned commercial
banks/ groups include Sberbank, the VTB Bank group, and
Gazprombank. Like private commercial banks, these
institutions do not have a policy mandate and are profit
maximizing, and target similar market segments. The main
state hybrid bank is the Russian Agricultural Bank (RAB),
which has a policy mandate to focus on agribusiness, while
also engaging in broader commercial banking activities. The
principal state development institution is the VEB group,
which has a broad policy mandate, subject to a legal
obligation not to compete with commercial credit
institutions. It on-lends or directly lends to firms, but
does not collect retail deposits.1 There are also several
smaller state-owned banks that primarily engage in
commercial activities and are owned by sub-national
entities. The authorities should continue pursuing the
gradual privatization of state-owned commercial banks, as
economic conditions permit. There may be benefits to
revisiting the role and structure of the state hybrid and
development institutions, with corporate governance reforms
being a priority.State-owned financial institutions should
not be used to bail out struggling commercial banks. In
other respects, the administration of financial subsidies
appears to follow a number of good principles, although
coordination could be improved. There have been many
positive changes in the corporate governance of state-owned
banks in recent years. reform of the current ownership
structure could support the spread of good corporate
governance practices. The composition and functioning of
many SOB boards is an area that requires attention. Finally,
SOB lending to SOEs should be conducted on an arm’s length
basis and on commercial terms. |
| format |
Report |
| author |
World Bank International Monetary Fund |
| author_facet |
World Bank International Monetary Fund |
| author_sort |
World Bank |
| title |
Russian Federation Financial Sector Assessment Program : Role of State in Financial Services |
| title_short |
Russian Federation Financial Sector Assessment Program : Role of State in Financial Services |
| title_full |
Russian Federation Financial Sector Assessment Program : Role of State in Financial Services |
| title_fullStr |
Russian Federation Financial Sector Assessment Program : Role of State in Financial Services |
| title_full_unstemmed |
Russian Federation Financial Sector Assessment Program : Role of State in Financial Services |
| title_sort |
russian federation financial sector assessment program : role of state in financial services |
| publisher |
World Bank, Washington, DC |
| publishDate |
2016 |
| url |
http://documents.worldbank.org/curated/en/2016/08/26739419/russian-federation-financial-sector-assessment-program-technical-note-role-state-financial-services http://hdl.handle.net/10986/25067 |
| _version_ |
1764458294125002752 |