Government intervention in the Russian energy sector is providing an unexpected fillip to local investment banks offering mergers and acquisitions advisory services. 

Reform is altering Russia’s banking landscape and, by leveraging innovation, entrepreneurship and product development capability, Russia’s mid-sized banks appear well-armed to profit from change.

Kazakhstan’s spectacular financial boom is beginning to attract the attention of European banks, reports Christopher Pala from Almaty.
European banks have long perceived Kazakhstan, the largest after Russia of the former Soviet republics, as “too far, too small, too risky”. Five times the size of France with its economic capital, Almaty, close to the Chinese border and as far from Paris as Paris is from New York, Kazakhstan’s population is only 15 million: a small market spread over a huge area, ruled by an authoritarian president unwilling to make the transition to democracy.

Delta Banka, Serbia’s second largest bank by assets, has been acquired by Banca Intesa, Italy’s biggest bank. The deal will see Intesa acquire either 75% plus one share or, under certain circumstances, 100% of the voting share capital of Delta Banka. It is expected to close early in the second quarter of 2005 subject to approval by the regulatory authorities in each country.

board member, PKO BP
If Piotr Kaminski’s previous stints at Poland’s securities watchdog (KPWiG) and the Warsaw Stock Exchange (WSE) are anything to go by, the 36-year-old board member of Poland’s mammoth savings bank, PKO BP, is a clear favourite to succeed close colleague Andrzej Podsiadlo as the bank’s next chief executive.

Bank privatisations and stock market listings are on the new government’s financial reform programme as it strengthens its bid for EU accession. Matei Paun reports from Bucharest.

vice-president, Vneshtorgbank
Andrey Suchkov is the head of Vneshtorgbank’s mortgage and consumer credit division and has a good claim to the title “father of Russian mortgages”.
Mortgages have just come of age in Russia and the business of lending money to people to buy their own home is expected to grow from the current $1bn to somewhere over $100bn by the end of the decade.

Alexei Kudrin, Finance Minister, Russia

Russia’s finance minister Alexei Kudrin (right) welcomed the country’s forthcoming adoption of international accounting standards at The Banker’s Top 50 Russian Banks presentation recently, as Stephen Timewell reports from Moscow.

The low capital base of the Russian banking sector is a serious concern; it could hamper the country’s ability to achieve its ambitious growth targets. But there is growth.Stephen Timewell reports from Moscow.
The Russian economy may be growing strongly, with latest GDP growth estimates put at 5.8% in 2004, but Russian bankers are concerned about the low capability of Russia’s banks and their lack of access to long-term funds.