Withdrawal of the Master-Bank’ License Provoked Redistribution of Customers from Small Banks to Larger Ones

The indirect effect of withdrawal of the Master-Bank's license happened to be more explicit. It consisted mainly in redistribution of customers from smaller banks to larger ones, primarily, state-owned banks. The above situation could not, but affect banks' liabilities and assets.


In November 2013, aggregate assets of the banking sector rose by 1.5%, while without taking into account the withdrawal of the Master-Bank's license, by 1.7%. So, without taking into account developments related to the Master-Bank it can be stated that the trend of acceleration of growth rates of banking assets prevailed. According to the results of November, annual growth rates amounted to 16.0%, having renewed again the minimum since the beginning of 2011.


Within a month, assets of 30 large banks rose by 2.5%, while consolidated assets of the Savings Bank and large state-owned banks, by 2.9%. Both the indices are the maximum ones since the beginning of 2013. In November, assets of small and mid-sized banks beyond the top 30 fell, on the contrary, by 1.6% or 1.0% without taking into account the withdrawal of the license of the Master-Bank after a seasonal slowdown in January.


М.Yu. Khromov, Leading Expert of Structural Research Center