Page 74 - RUSRptApr17

systems, a ban that could apply more broadly than to just Ukraine.
Ongoing de-dollarisation of balance sheets is a noteworthy trend, driven by both intentional bank policies as well as 16.8% ruble strengthening in 2016. The share of FX in VTB’s and the sector’s total loans and deposits in 4Q16 fell by 7 ppts and 8 ppts respectively. Sberbank saw a similar decline in the share of its FX deposits, however the fall in FX loans was less pronounced – by 3.3 ppts. On average, Sberbank’s and VTB’s balance sheets are more dollarised than on the sector level.
The CBR Is actively withdrawing its support from the bank sector. In 4Q16 both VTB and Sberbank continued to decrease their reliance on collateralised funding from the Central Bank of Russia (CBR), which accounted for 9% and 0.35% accordingly in the total liability structure of the banks. At the sector level, the share of CBR funding was down by 1.6 ppts y/y to 5.3%.
The Russian payment card Mir launched under the umbrella of National System of Payment Cards (NSPK) is negotiating an issue of co-badged cards Mir-Mastercard, Vedomosti daily reported on April 25, citing unnamed banking sources. Currently Russian banks can issue Mir cards under the Mir-Maestro deal, which is also controlled by Mastercard but has much more limited international coverage and clearance possibilities than possible Mir-Mastercard cards. About 4.5mn Mir cards were so far issued. Although initially resisted by the banks, the Mir payment card is gathering momentum as 176 local lenders adopted the system as of January 2017, with a total of 97% ATMs and over 75% of payment terminals accepting the card. Still, in January the country's largest banks private banks, including Alfa Bank, Otrkytiye, and Promvyazbank, spoke up against the government's plan to pay all public sector salaries, state pensions, and sick payments via Mir cards.
74 RUSSIA Country Report April 2017 www.intellinews.com