More and More Russian Banks Wind Down Retail Business
In spite of the fact that cost of new offices opening significantly reduced, Russian banks which extensively developednetworks in 2008, begin to wind down retail business.
Business property market is oversupplied and banks get opportunity to develop retail networks cheaper than half year ago. Rent discounts reach 50%.
But now Russian banks have less reasons to develop retail business, because demand for their services decreases. Rates of deposit growth in retail sector reduced 1.5 times, and retail credit drops 2 times. From October to December, 2008, increase of volume of credits for individuals in banking sector reduced by 30-40%.