The Russian banking industry is still characterised by a large number of credit institutions (836 as of 1 January 2020) and by a high level of concentration of capital.
In 2018-2019 the Central Bank of Russia (the “CBR”) continued its policy of reducing the number of credit institutions, aiming for their consolidation and the closer supervision of their activities in the current economic climate. Consequently, a noticeable number of banking licences were revoked in the last two years.
As of 1 January 2020, 60.3% of the banking sector’s total assets were held by the top five Russian banks1. State-owned banks2 continue to play a significant role in the stabilisation and development of the Russian banking sector.
 As of 1 January 2020, the top five Russian banks in terms of net assets are Sberbank (RUB 28.9bn, i.e. EUR 412.9m); VTB (RUB 14.3bn, i.e. EUR 204.3m); Gazprombank (RUB 6.5bn, i.e. EUR 92.9m); National Clearing Centre Bank (RUB 4bn, i.e. EUR 57.2m); and Alfa-Bank (RUB 3.8bn, i.e. EUR 54.3m); www.banki.ru/banks/ratings/ (all conversions are based on a notional rate of RUB 70 = EUR 1, as used for convenience throughout this guide).
Under the Deposit Insurance Law¹, a bank may only attract deposits from or open accounts for individuals, entrepreneurs and small business enterprises (“SBEs”) if the bank is a member of the deposit insurance system.
The Deposit Insurance Law established the Agency for Insurance of Deposits. The Agency has a supervisory role over the deposit insurance system. Its responsibilities include collecting insurance contributions, managing the funds held in mandatory insurance pools, establishing insurance premiums and monitoring insurance payments. Once a bank has been granted a banking licence which allows it to open accounts and deposits for the relevant clients, it is entered into the Agency’s register and needs to apply to the CBR to become registered as a participant in the mandatory deposit insurance system.
Participation in the deposit insurance system is subject to a number of requirements:
Failure to satisfy these requirements or choosing not to participate in the deposit insurance system will result in the bank being unable to attract deposits from or open accounts for individuals, entrepreneurs and SBEs.
Member banks pay a contribution into a deposit insurance fund. These contributions are calculated as a percentage of the average daily balance of relevant deposits maintained with a particular bank, subject to an established cap. All individual depositors, entrepreneurs and SBEs with deposits in member banks are entitled to 100% compensation for aggregate amounts up to RUB 1.4m (EUR 20,000).
 Federal Law No. 177-FZ “On Insurance of Deposits of Individuals in the Banks of the Russian Federation” dated 23 December 2003. Back ↑