Foreigners are interested in placing their funds into high profitability companies with rapid turnover and securities traded on the exchange market, because they are interested in getting speedy returns on their investments.

31 october 2013 | Izvestia

The ban on the opening of subsidiary foreign banks in Russia has become one of the steps aimed at limiting the financial activities of the “strangers”. The hidden reason for this step is the fear of domestic capital being marginalized in the domestic banking sector and its absorption by foreigners. Generally speaking, this could lead to the loss of financial independence.

Irina Larionova
Irina Larionova
Directorate for Financial Markets and Banking

Irina Larionova, deputy head of the Directorate for Financial Markets and Banking at the Analytical Center for the Government of the Russian Federation, commenting on the situation to the newspaper Izvestia, noted that the banking sector was not very happy to accept foreign guests. First of all, according to her, such extra competition is not necessary, and secondly, the foreigners lead to increased outflow of capital from the country.

Non-residents, as a rule, do not build far-reaching plans, their goal is to gain maximum profit in the minimum time, says Ms. Larionova: “Foreigners are interested in placing their funds into high profitability companies with rapid turnover and securities traded on the exchange market, because they are interested in getting speedy returns on their investments.”