VTB: Russian banking sector stable, but threats from US sanctions

MOSCOW, Sep 6 (PRIME) -- The Russian banking sector is currently stable, but there are big threats from the new U.S. sanctions aimed at the financial sector, VTB Bank CEO Andrei Kostin said at a forum on Thursday.

“I’m sure that the Russian banking sector is currently stable… we have big threats, and everyone understands it, everyone is waiting, and international investors – this is from the point of view of geopolitics, new sanctions, from the U.S. aimed at the financial banking sector,” he said.

There are currently no risks for the Russian banking system from internal problems, and the central bank has enough instruments to solve them, Kostin also said.

“Today, I do not see any risks for the financial system from the side of internal problems ... For the first time we received such a central bank that has the determination to deal with it (bailout) Those measures that have been taken show that the central bank has a great resource, capacity to eliminate those serious problems that arise,” Kostin said.

“We have 500 banks, that’s a lot,” he added.

Kostin also said that switching from settlements in U.S. dollars to settlements in national currencies may take years, but this should be done.

“I believe that if we do not work on ensuring safety of our banking and financial sectors, we will never create a sector that will be protected enough from external risks,” he said.

“This may take years, decades, but we must develop settlements in the Russian currency, in other currencies, not in dollars, in order to reduce the threat of risks from possible influence… from the U.S. administration.”

Trading in Russian securities should be actively transferred from foreign floors to the Moscow Exchange, Kostin also said.

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