Russian banks are still feeling the pain of the 2008/2009 financial crisis, the chairman of VTB Bank Andrei Kostin told CNBC on Friday, saying a lot of work still needed to be done to return to pre-crisis levels.
“The banking sector is still feeling the consequences of that crisis,” Kostin said.
Turning to the performance of banks in the country and the increasing capital outflows from Russia, Kostin said there was still growth of investment into Russia.
But “Russian businesses still have concerns about the future of the global economy,” he said. The reason for the outflows was not so much political uncertainty in the country as wider economic concerns, he said.
He said regulation was key to preventing a similar crisis in future, with bank supervision was one of the most important issues that needed to be addressedright now.
“That is something which is absolutely vital for preventing a systematic crisis,” he said.
He dismissed concerns that a new Russian President might not push through with such measures, saying: “No matter who is the next President, these issues should be tackled. They are vital for the country”.