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clients (very high net worth individuals). Highnets include citizens whose financial assets are valued at $1–5mn, or 100–500mn rubles. at the current rate. The number of wealthy clients in 2023 increased by 46% to 17,700 people, and their capital increased by 46% to RUB 3.7 trillion.
For very wealthy clients, the amount of capital in domestic banks starts from 500mn rubles. The number of such citizens increased by 64% over the year and amounted to 4,100 people, and the total amount of their funds increased by 68% to almost 9.4 trillion rubles. Despite the fact that the share of very wealthy clients in the total number of private banking clients is insignificant, their assets occupy 72% of all client funds in the segment, Frank RG calculated.
At the same time, about 30% of the private segment portfolio still saves in foreign currency, but their distribution and shares have changed over the year: assets in dollars decreased by 12 percentage points and amounted to 53%, the share of funds in euros lost 4 percentage points to 12%, while savings in yuan increased by 15 percentage points to 31%, and in dirhams they added 0.3 percentage points to 0.6%.
The most significant driver of growth in the financial capital of private banking clients was the influx of new money (+35.4%), including due to a reduction in the outflow of capital from Russia, notes Lyubov Prokopova, project director of Premium & Private Banking at the analytical agency Frank RG, in a release. Other factors were deposits in banks (+4.2%), currency revaluation (+8.9%), changes in the value of exchange assets (+13.2%).
According to Frank RG, the share of high net worth financial assets outside Russia from 2018 to 2023 decreased from 70 to 60–65%. According to the Bank of Russia, the volume of cross-border transfers in 2023 decreased by almost 35% year-on-year: in 2022, citizens transferred 4.4 trillion rubles abroad, and in 2023 – 2.9 trillion rubles.
The Central Bank is working on a mortgage lending standard, which could become mandatory for all banks, said Alexander Danilov, director of the regulator’s banking regulation and analytics department, in an interview with IRN.RU. The Central Bank is developing the document only for banks, but will also be available to borrowers, Danilov noted. The Central Bank began to resolve the issue of a risky mortgage from a developer in dialogue with banks and developers and at first “tried to convince them,” Danilov said. As a result, the Bank of Russia still had to tighten regulation. But the Central Bank “does not give up hope” that they will be able to find a format for dialogue with the banking community in order to anticipate risks without introducing regulatory measures and create “the right guidelines” in the market, Danilov explained the essence of the regulator’s idea.
The total volume of the shadow market for the sale of personal data in
137 RUSSIA Country Report June 2024 www.intellinews.com