#AceFinanceNews – KIEV – April 16 – Ukraine’s acting prosecutor general, Oleg Makhnitsky, says that criminal proceedings have been launched against 14 banks – including Russia’s biggest bank, Sberbank, RIA Novosti reports.
#AceFinanceNews – MOSCOW, March 24 – The Fitch international rating agency has downgraded the ratings of nine Russian state-owned companies, including Gazprom and LUKOIL, to negative from stable.
The agency has also revised its outlook to negative from stable on 16 Russian banks, including Sberbank, Rosselkhozbank, Alfa Bank, Gazprombank and Vensheconombank.
“The rating actions follow Fitch’s revision of the Russian Federation’s Outlook to Negative from Stable and the affirmation of its Long-term foreign and local currency Issuer Default Ratings (IDRs) at ‘BBB’ on 21 March 2014,” the agency said in a press release on Monday, March 24.
On March 21, Fitch revised its rating of Russia to negative from stable citing a potential impact of Western sanctions on the economy and business environment in Russia.
Fitch analysts think that the direct effect from the declared sanctions will not be significant, but in the future investors can face new measures such as restrictions on Russian companies’ access to international capital markets.
Russian Finance Sources
#AceFinanceNews – BEIJING – March 23 – China’s yuan (renminbi) may become a third reserve currency in the world in the future, Managing Director and Chief Economist of investment company Sberbank CIB Yevgeny Gavrilenkov said at the 15th governmental Chinese economic development forum in the Chinese capital on Sunday.
“This forecast can be made on figures of domestic economic growth. Probably the country will keep high GDP growth rate and the GDP volume will increase to around 14-16 trillion U.S. dollars for a brief period of time, the indicators comparable to the European Union and the United States.
Meanwhile, Chinese securities are more attractable for the countries that have a surplus in economy, particularly the Middle East states, and China will obviously follow the path of securing the country’s assets,” the expert noted.
On January 23, 2012, Sberbank and Troika Dialog announced the closure of the deal for Sberbank’s acquisition of 100% of Troika Dialog’s equity capital.
As a result of the subsequent integration, the Corporate & Investment Business was created, which has been operating under the Sberbank CIB brand since October 8, 2012.
Sberbank CIB’s key areas of business are corporate financing, securities and derivatives trading, structured products, private equity investments, mergers and acquisition consulting, debt and equity capital procurement, as well as market research.
Ace Related News
1. March 1 – 12.15 GMT – Extract – #AceFinanceNews says that `Chinese Yuan can become dominant world reserve currency according to the latest surveyhttp://wp.me/pzTwj-2sn
#AceFinanceNews says according to latest reports in MOSCOW, February 06. /ITAR-TASS/. US regulators’ struggle for a clear banking system caught up with the major Russian market players. According to Kommersant daily, JP Morgan denied Sberbank and VTB the right to make transactions of customer payments since the US bank revised approach transparency of operations.
According to the paper’s source, the US partner notified the banks of ceasing their operations with customer payments, though continued its own treasury transactions with Sberbank and VTB.
In effect, the paper says, the banks transferred all customer transactions to Bank of America and Bank of New York (Sberbank) and Citi and Bank of America (VTB). VTB is going to take treasury transactions out of JP Morgan, whereas Sberbank plans to continue such partnership.
Actions of JP Morgan, which is one the banks that leads by the number of the US authorities’ complaints, are comprehensible. Last year alone JP Morgan paid financial regulators about $20 billion for various violations on mortgage-backed securities. This year the bank is to pay another fine of $2.6 billion for failure to notify the authorities of suspicious customer transactions. Under such circumstances, the bank’s selective refusal to cooperate raised eyebrows in the market as procedure remained unchanged for a number of other Russian banks holding correspondent accounts in JP Morgan.
It may be the business scale of the Russian leading banks that caused such a coolness in JP Morgan attitude, the paper says.
Along with the maximal number of customer transactions as compared to other Russian banks, Sberbank and VTB carry out a large number of operations in the interests of smaller banks holding correspondent accounts in these banks and unable to open them in US banks.