Monday morning I arrive at the Institute around 10am and as I am coming up the stairs to the 3rd floor International office, I run into Valentina on the stairs--she says that the Institute is, right then, taking some of the international students to visit a bank, and that I am welcome to come along. The group passes me on the stairs on the way to the street. I rush up the stairs, drop off my backpack, grab my camera, rush back down the stairs and join the group. It is made up of Dr. Bobarykina, Masha, all of the Chinese students, and some of the Slovakian and Russian students. We walk about 8 blocks, and as it is on almost every excursion, very cold. The name of the bank is roughly RosselhozBank, I will attach their logo in a photo shortly.It is one of the first 5 banks in the Russian Federation organized to focus on agricultural projects and financing---but is also now expanding to business in other sectors.
They are expecting us and there is a local television station covering the "event". Our Institute's Vice Director has made a personal call and they pretty much roll out the red carpet. We all roll in the front door, tracking mud and snow in every direction. All of us don't fit in the main elevator so we tie up another staff elevator moving us from floor to floor. Pictures of all this to follow. We are ushered to a cloakroom as is the custom almost everywhere, and then to a large conference room.
This room is outfitted with a huge spread of pastries, tea, and stacks of Blini, the ubiquitous Russian pancakes. I have been consuming a lot of these lately---the women bring them to the office and I have eaten them in homes. They are delicious and different from our pancakes. These are more egg/milk based, more spongy. You can put all kinds of things in them---jam, honey, sweet milk sauce---and I've also had them with tasty meat in the middle----sort of like the Russian version of a little taquito or burrito. There are also a variety of souvenirs, some of which are pretty darn cool----specifically, the Bank has given each of us an official 100 Rouble Note that is a special SOCHI commemorative edition and 4 official SOCHI 25 Rouble coins. From what I can tell, this is a big deal. They are hard to get and likely to go up in value as collectors items. Nice. Quite a kind and generous gesture.
We all have seats around a huge conference table, with microphones; tea is served. The Bank Director is present, Mr. Oleg Korgunov, a well dressed guy with a military looking haircut---sort of like what you'd have if you played for the Chicago Bears in 1960. He is quite an authority figure. He is joined by a half dozen junior officers, one of whom REALLY looks like Dwight Shrute from The Office TV show. We get a power point presentation from a very knowledgeable VP woman.
This bank has 78 branches across Russia, 2nd biggest. and has capital of around 30 Billion $. The bank we are in is capitalized at around $ 700 million. They are a Federal Regional Commercial bank underneath the Central Bank of the Russian Federation. They are 100% state owned and as far as I can tell, it is the same for the entire Russian banking system.
Some interesting facts according to the Director. These banks have a 70% reserve requirement! The overnight rate between Central and regional banks is 8.25%! Sounds a bit more conservative than our own system in the US. Their credit portfolio is approximately 30 billion Euros. I ask a bunch of questions, some hypothetical, some not. I am curious as to how easy it is to borrow money in Russia. From what I can tell, they are eager to attract foreign capital. I ask various questions about capital requirements, credit scores, business plans for small business borrowing. They paint a pretty rosy picture in terms of access. I have talked about this with several private Russian citizens who tend to tell a different story in some cases. There a quite a few men here with entrepreneurial ambitions who are frustrated with lack of opportunity. Not picking on Russia at all here, but it is the same story in the US. Banks lend money to people WITH money. Entrepreneurs often have ideas but no money.
I ask about internships for American exchange students and get a somewhat vague answer.
The director and I have a lengthy discussion about state owned versus private banking. He believes that government owned banks are safer---and he grins a little----knowing full well that our private banking system in the US almost destroyed the world economy 6 years ago. I have a more nuanced view of course but it is a good natured discussion. Hedy, one of the Chinese students asks a series of questions about access on-line banking and Zussana, a Slovakian, asks a really cool question about their philanthropic objectives. The answers are clear at times and also not so clear. About 70% of their credit portfolio is targeted at rural communities---at lower rates---and they have initiatives such as a "young farmer program".
There are cameras clicking and whirring around us at all times. Natalia and Masha translate everything into English and then back into Russian. My respect and admiration for the people that do this difficult and sometimes thankless job is immense. I would really love for these two friends of mine to meet my ESL and English colleagues at NVCC---they are amazing in both places and would have a lot to talk about and share.
The stack of Blini around us are for Masleniza which is this Sunday. An Orthodox Holiday representing the beginning of Lent. One of the main tenets of Masleniza is the forgiving of all transgressions and the consumption of Blini! It is a pretty big deal here. There are honey sellers near the Institute hawking their products, lots of traditional dancing, music, and much feasting.
We then are given a tour of the entire bank, including the directors office. I get his business card and I write him a note later by email. I have all these ideas about introducing American business folks to Russia and a bank contact is perfect for such initiatives. Whether I can implement anything remains to be seen, but it has been a productive day. Photos to follow! This was on local TV on Thursday---apparently without much mention for the Institute but a lot of Bank coverage. Apparently you have to pay a little sometimes here for public relations. More soon.
They are expecting us and there is a local television station covering the "event". Our Institute's Vice Director has made a personal call and they pretty much roll out the red carpet. We all roll in the front door, tracking mud and snow in every direction. All of us don't fit in the main elevator so we tie up another staff elevator moving us from floor to floor. Pictures of all this to follow. We are ushered to a cloakroom as is the custom almost everywhere, and then to a large conference room.
This room is outfitted with a huge spread of pastries, tea, and stacks of Blini, the ubiquitous Russian pancakes. I have been consuming a lot of these lately---the women bring them to the office and I have eaten them in homes. They are delicious and different from our pancakes. These are more egg/milk based, more spongy. You can put all kinds of things in them---jam, honey, sweet milk sauce---and I've also had them with tasty meat in the middle----sort of like the Russian version of a little taquito or burrito. There are also a variety of souvenirs, some of which are pretty darn cool----specifically, the Bank has given each of us an official 100 Rouble Note that is a special SOCHI commemorative edition and 4 official SOCHI 25 Rouble coins. From what I can tell, this is a big deal. They are hard to get and likely to go up in value as collectors items. Nice. Quite a kind and generous gesture.
We all have seats around a huge conference table, with microphones; tea is served. The Bank Director is present, Mr. Oleg Korgunov, a well dressed guy with a military looking haircut---sort of like what you'd have if you played for the Chicago Bears in 1960. He is quite an authority figure. He is joined by a half dozen junior officers, one of whom REALLY looks like Dwight Shrute from The Office TV show. We get a power point presentation from a very knowledgeable VP woman.
This bank has 78 branches across Russia, 2nd biggest. and has capital of around 30 Billion $. The bank we are in is capitalized at around $ 700 million. They are a Federal Regional Commercial bank underneath the Central Bank of the Russian Federation. They are 100% state owned and as far as I can tell, it is the same for the entire Russian banking system.
Some interesting facts according to the Director. These banks have a 70% reserve requirement! The overnight rate between Central and regional banks is 8.25%! Sounds a bit more conservative than our own system in the US. Their credit portfolio is approximately 30 billion Euros. I ask a bunch of questions, some hypothetical, some not. I am curious as to how easy it is to borrow money in Russia. From what I can tell, they are eager to attract foreign capital. I ask various questions about capital requirements, credit scores, business plans for small business borrowing. They paint a pretty rosy picture in terms of access. I have talked about this with several private Russian citizens who tend to tell a different story in some cases. There a quite a few men here with entrepreneurial ambitions who are frustrated with lack of opportunity. Not picking on Russia at all here, but it is the same story in the US. Banks lend money to people WITH money. Entrepreneurs often have ideas but no money.
I ask about internships for American exchange students and get a somewhat vague answer.
The director and I have a lengthy discussion about state owned versus private banking. He believes that government owned banks are safer---and he grins a little----knowing full well that our private banking system in the US almost destroyed the world economy 6 years ago. I have a more nuanced view of course but it is a good natured discussion. Hedy, one of the Chinese students asks a series of questions about access on-line banking and Zussana, a Slovakian, asks a really cool question about their philanthropic objectives. The answers are clear at times and also not so clear. About 70% of their credit portfolio is targeted at rural communities---at lower rates---and they have initiatives such as a "young farmer program".
There are cameras clicking and whirring around us at all times. Natalia and Masha translate everything into English and then back into Russian. My respect and admiration for the people that do this difficult and sometimes thankless job is immense. I would really love for these two friends of mine to meet my ESL and English colleagues at NVCC---they are amazing in both places and would have a lot to talk about and share.
The stack of Blini around us are for Masleniza which is this Sunday. An Orthodox Holiday representing the beginning of Lent. One of the main tenets of Masleniza is the forgiving of all transgressions and the consumption of Blini! It is a pretty big deal here. There are honey sellers near the Institute hawking their products, lots of traditional dancing, music, and much feasting.
We then are given a tour of the entire bank, including the directors office. I get his business card and I write him a note later by email. I have all these ideas about introducing American business folks to Russia and a bank contact is perfect for such initiatives. Whether I can implement anything remains to be seen, but it has been a productive day. Photos to follow! This was on local TV on Thursday---apparently without much mention for the Institute but a lot of Bank coverage. Apparently you have to pay a little sometimes here for public relations. More soon.
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