Country risk

Bank Vozrozhdenie is the resident of the Russian Federation and carries out its activity on the territory of the Russian Federation.

The economy of the Russian Federation has some peculiarities that are typical to developing markets, including actual inconvertibility of the national currency in the majority of foreign countries, relatively high inflation rate and dynamic economic growth. The Banking sector of the Russian Federation is sensitive to confidence level fluctuations and changes of economic situation, from time to time it may experience liquidity scale-down. Senior management can not predict all the trends that may influence the development of the banking sector as well as their influence (if any) on financial standing of the Bank.

The Bank’s external economic activity lies in opening correspondent accounts in foreign banks and servicing export and import operations of its clients. The minimization of country risk is managed due to cooperation only with the most reliable bank’s of the developed countries.

As at January 01, 2009 the Bank has 55 branches, 2 representative offices, 82 additional offices, 37 cash outlets in Moscow and Moscow region, as well as in other regions of Russia. Regional risks of the Bank are diversified due to the location of client base in 20 Russian regions. The Bank is continuously monitoring regional credit risks, this allows to manage portfolios on the regional level and to take into consideration peculiarities of local markets when evaluating individual projects of the Bank.