Gref has assessed competition in the Russian banking sector

© RIA Novosti / Maxim to Bogodeeva in fotobabble cell. ArchiveGref has assessed competition in the Russian banking sector© RIA Novosti / Maxim to Bogodeeva the image Bank

Competition in the Russian banking sector has not declined due to recent high-profile redevelopments, resulting in a result, the banking group will make a serious competition to Sberbank, said the head of Sberbank German Gref.

The Chairman of the Central Bank Elvira Nabiullina said Monday that the share of state banks in the assets of the Russian banking sector increased to 66.2% after the transition «FC Opening», the Bank and PSB control to Fund the consolidation of the banking sector (PCBS) from 59.2 per cent in early 2017. She also noted that the regulator is not going to stop the process of improvement of the banking sector due to fears of a nationalized system, while faster time-to-market sanitized jars.

«Now say that the competition in the banking sector is reduced. I’m not sure that’s true, because banks that were recapitalized over the last several years — I can’t say that these banks were competitors for us, we didn’t consider them as competitors. Now the new banking groups, including two groups that had emerged for us to compete, competition will be quite high,» Gref said in a conference call with analysts following the results of results under IFRS.

In his view, such competition would put pressure on the margin of the savings Bank. «Will do, so that we will feel of competitors in all areas of our business. I think this is a positive change for the sector, and it will be a big challenge for banks,» — said the head of the largest Russian Bank.

The Bank of Russia last year took on the reorganization through FCBS three major Russian Bank in August and September, the Central Bank announced the reorganization of the Bank «FC Opening» and of the Bank, in mid-December — PSB. In early February of this year, Nabiullina said that the regulator took the decision to combine and reorganized the Bank «FC Opening» with the exception of the share of bad assets.

And on Wednesday, February 21, the Central Bank reported that it approved the plan of sanitation of Bank «Soviet», the functions of the temporary administration assigned for PCBS. Earlier the Bank was sanitized by Tatfondbank, which last year lost its license.