Russian financial market holds the ground, but squeaks
29 January 2008And this creak first of all is reflected in small and medium banks. In searches of the way-out from an adverse situation they fasten eyes on the average investor.
Deposit interest rates grow, drawing potential investors. Today it is not a problem to find deposits at about 12-15 % per annum. However such tempting “percent” dies away on a background of predicted inflation which should make 11-12 %. The forecast does not mean that and it will be for sure, but an opportunity to get significant income through deposits is rather illusive. In addition – the mistrust of citizens to banks. Got burned once, an average Russian prefers to spend money at once, or to take loans for larger purchases.
Besides there is one more slippery moment not known for the majority of inexperienced investors: if promised by a bank interest on deposits is higher than the Central Bank’s rate of refinancing , it entails the withholding system (the physical persons income tax).
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