State-owned banks are often referred to as reliable credit institutions. What's behind the term? What financial structures have this status? This is worth understanding for those who are looking for a bank for a deposit or a loan.
State or state-owned: what is the difference
State-owned banks are credit institutions that are wholly or partly owned by the Russian government or other government agency / structure. Examples of such banks: Sberbank, VTB, Rosselkhozbank, Gazprombank, Russian Capital, Svyaz-Bank, Post-Bank and others.
A little about how you can own a bank in whole and in part. Each bank has an authorized capital - the amount of money and the value of property originally invested by its creators. The capital is divided into shares. They can be in the hands of one owner, or they can be divided into packages belonging to different owners.
The state can also act as the owner of shares in commercial banks. Such credit institutions are called banks with state participation. There are several options for state participation:
- The bank may belong to the Russian Federation entirely, then we are talking about a bank with 100 percent state participation. This is, for example, Rosselkhozbank.
- The state owns a controlling stake, that is, more than half of the bank's shares. With such a package, the state has a decisive voice in the management of the credit institution. Examples of such banks: VTB Bank, Sberbank.
- In some cases, the state owns less than half of the bank's shares. This is partial state control over a financial institution.
Credit institutions with 100 percent state participation or controlled by the state are also called state banks. Abbreviated - state banks. If the state has less than 50% of the shares, then in this case we can only speak of state participation.
Who owns a share in a bank on behalf of the state
The state can own shares through structures of different levels. It can be:
- federal government agencies;
- subjects of the Russian Federation: Russian regions and federal cities. For example, Ak Bars Bank controls the Republic of Tatarstan;
- municipalities. In particular, Yekaterinburg owns about 30% of the bank with the same name.
The state can own the shares of the bank directly or indirectly. Direct participation implies that the block of shares of the bank is owned directly by the state structure. The second option is that a state-owned company or organization is a shareholder of the bank. For example, Gazprombank is a state-owned bank, since it is controlled by the state-owned Gazprom and related structures.
What gives the bank state participation
State-controlled banks are considered more reliable. During crises, the government supports such financial institutions in the first place. Such a bank cannot suddenly go bankrupt and leave the client with nothing.
On the other hand, the current Western sanctions also affect many state credit organizations. However, these restrictions relate to the international activities of state banks and have little effect on their reliability for an ordinary depositor.
Where to find out whether the state participates in the bank's capital
It is best to check information about the owners of a particular financial institution on its website. Another reliable source is the "Directory of Credit Institutions" on the website of the Russian Central Bank.
