NOVOSIBIRSK, December 14 (RIA Novosti) - The Association of Russian Banks (ARB) is strongly opposed to foreign banks opening their affiliates in Russia, the ARB President said Wednesday.
Garegin Tosunyan said foreign banks should not be allowed to open affiliates in Russia as this may undermine competition in the country's banking sector.
He said it was naive to expect foreign banks to bring cheap loans to Russia's cash-stripped economy. They lend money mainly to corporate heavyweights, so small and medium-sized businesses can only rely on domestic banks for loans, he said.
Access to the Russian financial market is a key point of contention at negotiations on Russia's accession to the World Trade Organization. Washington is pressuring Moscow to let American banks and insurance companies open their branches in Russia.
