Barclays must tread carefully
Expobank has assets of $1.24 billions with 32 branches in western Russia, and one of the largest networks of ATMs in Moscow. Moreover, Russia’s economic growth at 8.1% last year is much more promising than UK, with a meagre 2.9% growth, not to mention the collapse of the market for credit-related securities.
But the haunting ghost of 1998 may return, when Barclays had to withdraw functioning from Russia, licking huge losses of over $325 million following a national debt default crisis. “The move is rightly timed with global scenario being favorable, but Barclays has to be careful in operational implementations to prevent such mis-happenings again,” comments a renowned international financial analyst, not wishing to be quoted. Add to that HSBC’s plans to partake of the Russian salad, which signals that achieving a medley of success will not be so easy, even on Russian soil.
Expobank has assets of $1.24 billions with 32 branches in western Russia, and one of the largest networks of ATMs in Moscow. Moreover, Russia’s economic growth at 8.1% last year is much more promising than UK, with a meagre 2.9% growth, not to mention the collapse of the market for credit-related securities.
But the haunting ghost of 1998 may return, when Barclays had to withdraw functioning from Russia, licking huge losses of over $325 million following a national debt default crisis. “The move is rightly timed with global scenario being favorable, but Barclays has to be careful in operational implementations to prevent such mis-happenings again,” comments a renowned international financial analyst, not wishing to be quoted. Add to that HSBC’s plans to partake of the Russian salad, which signals that achieving a medley of success will not be so easy, even on Russian soil.
Source : IIPM Editorial, 2012.
An Initiative of IIPM, Malay Chaudhuri
and Arindam Chaudhuri (Renowned Management Guru and Economist).
and Arindam Chaudhuri (Renowned Management Guru and Economist).
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