The Russian banking sector is one of the fastest-growing sectors of the economy today. The consumer credit boom, more investments in the sector and increased consolidation are key processes in the sector. Growing incomes are feeding more car loans, mortgages and consumer loans. New openings on the market are attracting the attention of international financial institutions, leading to several recent mergers and acquisitions involving foreign capital. Russian players are also getting involved in the consolidation process: national-sized banks are actively growing their business in the regions, including through acquisitions of regional banks. The biggest players are also branching out and buying-up financial institutes in neighbouring countries like Ukraine, Kazakhastan and the Baltic republics.
Rapid growth in consumer loans means higher credit risks for Russian banks. The latest PricewaterhouseCoopers survey held in spring 2006 shows that Russian banks see credit risk as the most important. The task at hand for Russian banks is to create a risk management system that can comprehensively and effectively manage credit, operational and market risks. To compete successfully on the market banks must have a clear development strategy, a transparent management structure and timely and objective management reporting for investors and other stakeholders. Other important elements of success are a developed IT system, a wide range of services and efficient client interaction processes.
PricewaterhouseCoopers global network is the leading provider of audit services to the banking sector in Russia. Our work with the Central Bank for the last few years and the audit of the largest banks in accordance with Russian and international accounting standards gives us unique experience and expertise in the sector. Our specialized banking departments can resolve a wide range of problems for clients. We can offer assistance in merger and acquisition deals, consulting on Eurobond issues and IPOs, internal audit services, risk management and performance improvement, tax and legal advice, choice and implementation of IT systems.
