Published on ottobre 29th, 2018 | by Eurasia News0
The Eurasian economy of the future: the banks of the Russian Federation guarantee against the risks of global trade
Verona – Key players and experts of the international investment market identified essential instruments for cross-regional development in the framework of the panel session “Eurasia’s economy of the future. How is the financial sector evolving?” on the sidelines of the XI Eurasian Economic Forum. The event was attended by high-profile representatives from leading financial institutions of Italy, Russia and China, namely from SACE, REGION Asset Management, Intesa Sanpaolo, Banca IMI, Association of Russian Banks (ARB) and Credit Bank of Moscow.
According to economists, positive trends in the development of Russian economy are associated with the current position of the national regulator. They also acknowledged the Russian Federation as one of the pioneers who gradually introduce new standards of financial control in order to reduce the level of fluctuation of the financial system which is especially important in light of the constant increase of risks associated with global trade.
“When the market expected the beginning of a recession in Russia in 2014, the Central Bank ensured a confident and consistent management that not only stimulated the development of Russian economy but was also beneficial to those who continued to invest in this market,” said CEO and General Manager of the Italian export credit agency SACE, Alessandro Decio. He also highlighted that to guarantee proper cooperation in the period of geopolitical uncertainty in the global economy it is significant to maintain a sustainable and active dialogue between representatives of the banking sector.
According to Vladimir Chubar, head of the Credit Bank of Moscow (CBOM), Russia’s fundamental indicators remain strong despite the uncertainty period in the global economy, and over the past 2.5 years, the regulatory tightening in finance has seriously transformed the financial sector in a positive way. “As a result of the banking sector recovery, asset shares of state-owned banks overtopped 60%,” – said the head of CBOM, – “Among the main limiting factors for attracting foreign investments to Russia our partners point out the uncertainty regarding sanctions, and the difficulty of estimating the premium associated with this type of risk”.
As a tool for managing these risks, the President of the Association of Russian Banks, Garegin Tosunyan proposed the creation of funds to finance the international projects, as well as the establishment of a special economic zone and, according to the expert, the Eurasian space needs its own single currency.
The participants of the session came to a unanimous agreement that the transition to a new quality of economic development depends on the further integration of digital resources and innovative tools into the financial system. So that H. Won, head of the Shanghai JZ Equity Investment Fund, spoke in favor of introducing a single digital currency at the global level to simplify banking operations. Experts also agreed that such decisions should be implemented with due consideration of the real rates of technological progress and on the basis that the sustainability of the fundamental economic indicators for each individual country should be ensured.