Экономические науки/ 1.Банки и банковская система

E.S. Maltseva, candidate of economic Sciences, associate Professor
T.A. Paladova, candidate of economic Sciences, associate Professor

Maikop state technological University, Russia

The future of Russian banks in the Chinese market

Abstract: The article discusses the possibilities and prospects for the introduction of new services of Russian banks due to the growth of economic relations between Russia and China.

Tags: Russia, China, banking, ruble-yuan calculations, plastic cards, deposits.

Experience in the development of bilateral trade and economic affairs between Russia and China in recent years has demonstrated that the transference links in a new qualitative state, increasing their efficiency urgently require improvement of payment and settlement relations, creation of a modern information infrastructure, enhance economic and financial cooperation.

In the XXI century the bilateral and regional trade and economic cooperation between Russia and China will be crucial for the development of the Russian Far East and the entire region of Southeast Asia. Tighter integration with the Chinese economy is very useful for the Russian Far East, which is rapidly developing in the last two decades. This cooperation may involve significant economic resources for regional development.

However, the development of cross-border trade is associated with numerous political and economic difficulties. Indeed, cash investments control of Chinese businessmen is very difficult. However, Russia and China are improving the system of trade settlement. To stimulate trade in the border areas of China and the Far East region are enserted ruble-yuan calculations. The calculations are carried out through Khabarovsk, Chita and Blagoveshchensk VTB branches, as well as through three Chinese border branches of Promtorgbank, which is the largest commercial bank in China.

China's economy has made a giant leap in the last decades. According to experts, in the next 20 years, the economy, which now ranks second in the world, could become the first economy in the world. And that is why it is profitable, and honor, and peace for Russia to have such a strong partner like China, as Chineese partners are predictable in all cases they can enter into long-term contracts and projects.

Development of all spheres of economic cooperation between Russia and China determines the relevance of the further development of the partnership and the banking sector.

As for Russian banks, it is necessary for the further development and strengthening of the international markets, as well as the expansion of the branch network, to open branches in China, as did the bank VTB. For more than three years VTB branch in Shanghai leads the amounts and volumes of currency trading "ruble-yuan." 1047 transactions totaling 19.4 billion. rubles [1] was taken only in 2013 .

Establishment of a branch in China will give banks the opportunity to make international payments in foreign currency in rubles, to conduct cross-border transactions in RMB, which will expand the range of services for companies involved in the Sino-Russian trade.

Customers of Russian banks will be able to carry out calculations with Chinese counterparts in RMB using accounts in the Shanghai branch, as well as to place deposits in China. In turn, potential customers in China will be able to settle the yuan to Russian exporters, having bank accounts.

Introduction of the Chinese payment system UnionPay seems strategically attractive . China UnionPay payment system was created by leading banks in the country, supported by the People's Bank of China in 2002. Two years later the company began to work outside of China, and by now, according to its own data, it has partnered with 8 million companies in 135 countries, in 30 of which bank customers can even order promoted by the bank bank cards [2 ].

   And as usual, the Chinese are doing very tempting, in terms of price proposals. Thus, the annual cost of servicing the "plastic" from MasterCardStandard and VISA Classic is about 700-1000 rubles. And the cost of bank cards CUP-Russia - only 250 rubles. It contributes to the promotion of our CUP cards on the market and the desire of the Russian authorities to isolate from US VISA Classic and MasterCardStandard, the more that we can safely say that the Russian government just will not obstruct Chinese cards. Russian banks also will not obstruct, knowing that the Chinese product is very nice in terms of annual service for individuals and acquiring.

UnionPay card may be of interest to various categories of citizens. For example, tourists, as well as people involved in the business and makes frequent trips to China. Moreover, between Russia and China, there is a significant increase in labor migration, increasing tourist flows.

Banks in Russia need to attract deposits in RMB. Currently, banks have a small amount of deposit products, where there is a given currency. And interest rates on them are very small ranging from 0.3 to 2.25%, depending on the duration and amount of the contribution. That is why up to date, this type of deposit is not attractive. It is necessary to expand the range of services in RMB and raise interest rates on deposits, thereby attract corporate clients. For example, access of Russian banks and their clients to China's financial markets for payments in national currencies will be easier. In addition, banks will be able to diversify the funding base through an alternative currency - the yuan.

An analysis of the preconditions of introduction of new banking operations revealed that the active relations between Russia and China may become a precondition for expanding the activities of Russian banks in the Chinese financial market, viz: the opening of branches of Russian banks in China; introduction of Chinese payment system UnionPay seems strategically attractive ; the ability to attract deposits in RMB.

Literature (source):

1.www.vtb24.ru - The official website of the bank VTB 24

2.en.unionpay.com - Official Site CUP