Russian financial system stability is bad / / Monitoring / rating

World Economic Forum (WEF) released yesterday, “Statement of Financial Development Report 2012.” In the ranking of the world’s financial centers of Russia in comparison with 2011 has kept low 39th place out of 62 possible. Russian authorities’ efforts to transform Moscow into the global financial capital, analysts WEF again appreciated.

However, against the background of the “stagnation” of global finance and no significant change at the top of the rankings. Top 5 in comparison with last year’s study has not changed: Hong Kong, USA, UK, Singapore, Australia. According to the authors, the financial systems of countries around the world have entered the phase of stagnation, which makes recovery of the global economy. Some improvements are observed only in the banking system – in terms of capital adequacy ratio of non-performing loans to total issued.

Ranking of countries with the most developed financial systems and capital markets, the WEF is the fifth year. With its creation included about 120 different factors of financial development. Among them – the business and institutional environment, financial stability, market conditions, access to finance and the development of the banking and non-banking financial services. The maximum score for each indicator – seven points, the mean value and determines the final score and rank. Score to the leader, Hong Kong, – 5.31 points, Russia – 3.3 points. The situation in other countries except Russia BRICS is different. China for a year lost four positions in the ranking, dropping to 23rd place from 19th, Brazil dropped two positions – up to 32 th place, India – four (40 th place), taking place next to the Russian Federation.

According to the authors, Russia still does not provide the required level of access to finance for business (53rd place on this indicator). Relative strengths of the Russian financial system identified by such factors as the business climate (32 th place), financial markets (35th place, especially the stock market, a situation which has improved), non-banking financial services (8 th) securitization (third place) and mergers and acquisitions (7th place). To the chagrin of the Russian authorities, the weaknesses attributed unfavorable and deteriorating all the regulatory environment (59th), the development of the banking sector (58th) and the relative instability of the financial system (41-th place in the first place because of the situation in the banking sector).

by IrwinVNhan