Putin against foreign banks in Russia

[Baltic]

Russian President Vladimir Putin is against the operation of foreign bank branches in Russia, he said at the conference "The role of the banking sector in solving the problems of regional socio-economic development" in Novosibirsk on Wednesday. The representatives of Russia's largest banks took part in the conference. "The Russian government agrees with our banking community. The activities of foreign bank branches should be restricted, almost forbidden," Putin said. "This is connected with the fight against terrorism, money laundering and control over financial flows," the President said.
Russia's banking community is concerned that the arrival of foreign banks on the Russian market for banking services will put domestic banks in a very difficult position.
Putin also said that he would like the National Banking Council to consider the issue of modernizing the existing system of state-owned banks.
Putin stressed the importance of establishing clear criteria for expedient and efficient government participation in the capital of credit organizations. "Where such participation is considered necessary, the role of the government in controlling their activities shall be increased," the head-of-state underlined.
Putin called on Russia's banking sector to participate more actively in the implementation of national projects. The banking system should correspond to the new challenges and demands of Russian citizens, he added.
The President outlined national projects on September 5. There are four national projects, in the spheres of agriculture, education, healthcare and housing.
Approximately RUR 138 billion (about $4.8 billion) will be allocated for the implementation of these projects, and together with non-budgetary funds and state guarantees the total figure will amount to RUR 180 billion ($6.265 billion).

:roll:

[Violet Fashion by Mindy]

I see this as a good thing.

It ensures the following.

1. Russian banks are able to establish themselves properly without outside influence. Thus enabling greater returns for the government when it comes time to fully open up the economy.

2. The profits are used for investment in critical infrastructure.

For sure it will hampen foreign investment. But that is a small price to pay in the short term for ensuring in the long term the local banking industry can compete with foreign competitors.

[duck]

It's good for whoever controls the Kreml and their affiliated oligarchs. If this goes through they have full control of who gets loans from banks and who's credentials are deemed unsatisfactory for economic or political reasons.