March 22, 2017 in Berlin, the first meeting of the...
The importance of free market economy is now being taken seriously by various states and hence is looking for ways through which they can attract foreign investors. For this, they are taking all the necessary measures such as reforming the financial sector. One such country is Russia, which is showing tremendous potential in terms of investing.
As one of the emerging economies of the world, Russia has lot in store for foreign investors in almost all its sectors. It is offering loads of commercial opportunities for foreign firms especially in the financial sector.
The recent financial turmoil has further intensified the need of foreign investment in the financial sector of Russia, as there is a dire need to correct the short term as well as long-term challenges of economic diversification and competitiveness in the sector.
The financial sector of Russia looks promising for the foreign investors as Russia is gearing up the process of modernization of its banking system and wants to obtain excess capital to finance the various infrastructure projects.
Why invest in the financial sector of Russia
Gradual enhancements in the macroeconomic scenario in Russia and a phenomenal growth in the banking sector in the recent past is one of the major reasons on why Russia is one of the favored destinations for investing in the financial sector.
Apart from this, the investor friendly legislations are conducive for investing. The Russian parliament has passed several legislations, which are acting as a major fillip in the functioning of the financial sector. This has mostly done in the view of raising capital for credit purpose from the non-residents. The effective legislations have also opened up the Russian banking sector. These legislations no more restrict foreigners from developing specified banking services or from working in the Russian market.
The Central Bank of Russia is not behind, it is taking all the necessary efforts to improve the quality of services, management and increase the transparency in the working of the financial sector.
The desire to expand, the aspiration to provide the best services to the people of Russia, the government of Russia as well as the Central Bank of Russia are reigning in several financial reforms which will encourage foreign investment as well as protect the interests of the state owned banks. These reforms mostly include, strengthening the private sector banks by enhancing the deposit insurance and bank supervision, improving the quality of bank capital, eradicate money laundering and establishing credit bureaus.
Just like the banking sector, the stock market is experiencing rapid growth. The Russian Trading System (RTS) has gone up and is showing huge promises in the bond market.
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