Russia's largest banks determined to compete with Sberbank in the struggle for private clients.

The fact of foreign banks opening their branch structures in Russia has caused too much headache to Russian banks.  Decades-long experience of technologies, access to inexpensive long-term resources, readiness to spend tens of millions of dollars for the development of new markets - these are all indisputable competitive advantages of foreign banks. If Russia meets the requirements of the World Trade Organization and grants foreign banks free access to the national bank market, Russian banks will run the risk of being pushed to uninteresting and unprofitable segments of the market. It is therefore not surprising at all that small and medium-sized Russian banks are willing to consider purchase offers from their foreign partners. One may say that they become the platform for foreign banks' expansion. As for financial institutions, which make the top ten of largest banks, they hastily conduct adequate preparations in order to be able to face equal competition with foreign colleagues.

Russia's Savings Bank, Sberbank, enjoys the most stable position in this respect. The absolute reliability of the bank and its presence in almost every city and town of Russia is a worthy compensation to unprofitable deposit rates, complicated crediting terms and the low-class servicing. Nevertheless, Sberbank's share on the retail market is reducing slowly but surely.