The French BNP Paribas Hurries to Enter the Sverdlovsk Oblast

25.05.2009 — News

THE SVERDLOVSK OBLAST

BNP Paribas Group plans to open a branch of BNP Paribas Vostok bank specialising in lending to individuals and small enterprises. The bankers have visited the Sverdlovsk oblast as part of the French businessmen delegation headed by Jean de Gliniasty, French Ambassador to Russia.

Appearance of the second French bank can warm up the credit market in the region. In the current economic downturn, the banks are reluctant to give loans to individuals or legal entities; this is why the arrival of the new market player is deemed to be positive. The first French bank to establish its presence in the Sverdlovsk oblast was Banque Societe Generale Vostok (BSGV).

Financial analysts told RusBusinessNews that BNP Paribas's plans are a proof of the favourable situation in the regional economy. No financial corporation would obviously invest in a loss-making region; despite the current crisis, foreign banks do strive to get a foothold in the Sverdlovsk Oblast market. Such banks as Raiffeisenbank, KMB Bank, Banque Societe Generale Vostok, Citibank, Home Credit and Finance Bank successfully develop their business in the Sverdlovsk Oblast.