Given the state of the financial services market worldwide, the regulations governing investments in banking institutions have recently attracted the attention of a much broader audience. Unlike in the United States, in Russia there is no “source of strength” principle that effectively makes a bank’s significant shareholders guarantors of bank losses. Accordingly, private equity and other investors have been active in the Russian market for some time now. Nonetheless, in addition to the challenges posed by ordinary commercial investments in Russia, there are regulatory hurdles investors need to understand before investing in Russia’s financial sector.
This Quick Reference Guide highlights the key triggers and concepts associated with obtaining governmental approvals to invest in banks and other credit organizations in Russia. We hope you find it useful in navigating regulatory issues in your investment transactions.