The list of systemically important credit institutions in Russia has been expanded by the Bank of Russia to include Tinkoff Bank, which ranks 16th in the country in terms of assets. According to the press service of the regulator, this decision was made due to the “active business growth” of the bank significantly exceeding the average market indicators, as well as the “extensive customer base”.
As specified, Tinkoff Bank has become the 13th systemically significant bank in Russia. In addition to it, the list also includes state (Sberbank, VTB, Gazprombank, Otkritie, Promsvyazbank, Rosselkhoznadzor), foreign (Raiffeisenbank, Rosbank, and UniCredit), and private (Alfa-Bank, Credit Bank of Moscow, and Sovcombank) banks.
According to the Russian biggest financial portal ‘banki.ru’, as of September 1, Tinkoff Bank ranked 16th in the county in terms of assets (over 1 trillion rubles) and 13th in terms of capital (151.2 billion rubles). As of June 30, the bank and its subsidiaries served 16.7 million customers and, according to the results of the first half of the year, the net profit of the Tinkoff Bank holder ‘TCS Group’ amounted to a record for the company 30.3 billion rubles.
Despite the fact that some experts consider it unreasonable to include Tinkoff Bank in the list of significant for the system, arguing that the bank rather did not meet the default criteria and had fewer assets than other systemically significant banks, the organization still has a number of advantages.
First what makes the bank worth to be included in the list is its share in the market of deposits of the population that corresponds to all the necessary indicators. Another important factor is that a significant share of the bank’s market is currently in the retail business (particularly, deposits and loans are about 2 per cent of the sector), which is higher than some other systemically significant banks.
As a decisive factor in adding a bank to the list of systemically significant ones, analysts consider the bank’s process of building an ecosystem. This factor is especially important after the Bank of Russia published a report on ecosystem regulation in June 2021, which highlighted that the regulator may revise the criteria for classifying banks as systematically significant ones and take into account the activity of a credit institution in the development of non-core business.