Highly leveraged operations in the sovereign debt market has been the main cash cow for commercial banks, while corporate lending and retail banking remains under-developed. With the collapse of Russian fixed income markets dozens of Russian banks are technically bankrupt. The Central bank has given private depositors a vague guarantee for their savings although it is unclear how it may finance this scheme if bad comes to worse while an attempt to ease the situation by injecting liquidity into the system failed miserably this week, when banks used reserves freed up by the Central bank to purchase currency. Central bank, Interfax, RMG estimates The information contained herewith is based on information made available to the public and is for information purposes only. Information sources are deemed reliable by RMG Securities, however RMG Securities abstains from any liabilities determined from the information herewith.
Analysis is based on dated market information and is subject to change.