State Capitalism
Russia’s Great Bank Takeover

For the past year, the Central Bank of Russia has been systematically destroying the country’s private banks, consolidating immense financial power in the hands of the Kremlin.

Published on: January 12, 2018
Karina Orlova is staff writer for The American Interest and Washington correspondent for Echo of Moscow radio.
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  • FriendlyGoat

    Did you know that people voting religion can produce these kinds of effects and maybe not even know whether or how they took place?

  • Common Ground

    “..the collapse of the Soviet Union is the greatest geo-political disaster of the 20th century!” Vladimir Putin (KGB colonel and one of the world’s RICHEST men!)
    …does the above statement sound like a man who believes in democracy?
    CAVEAT, Mr. Trump!

    • Brittany

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  • Mika Riik

    This writing deserves a sequel in which the effects of this bank consolidation into the state authorities is analyzed. In the West, banks serve as arteries to the business life, and banks essentially keep the economy rolling. Could this development in Russia hasten the demise of the country and speed up hitting head first the brick wall?

  • Mister Squirrel

    They are probably seeking to destroy banking records at these banks, covering any tracks to Trump, now that Putin has a functional droid in the White House.

    I just hope Putin cares for the Russian people, all that wealth ULTIMATELY is from the people.

  • Russia is becoming both less and more like modern-day America in this regard…transforming itself into an oligarchy.

    I thought their people learned from history that the state trying to consolidate control over finance and economics never ends up well.

  • Increased government involvement in Russian banks is undoubtedly a defense against the US and the EU – and preparations for an increase in sanctions in the financial sector. These different are the same – at a time of great risks, the state takes responsibility for the state of the economy. The American mortgage crisis, which began with a massive non-return of housing loans, due to the thoughtless use of derivative financial instruments, soon spread to the entire US financial sector, and then to other countries. The world’s largest investor, Warren Buffett, called the 2008 US mortgage crisis the biggest speculative market bubble ever seen – Russia and other countries should not depend on the next crises that are due to the incompetence of US authorities.
    The US is preparing a new round of sanctions and only support the financial sector of the Russian Federation by the state can neutralize these risks.

    Увеличение участия государства в российских банках это несомненно защита от США и ЕС – и подготовка к увеличению санкций в финансовом секторе. Данные разные суть одна – в период больших рисков государство берет ответственность за состояние экономики. Американский ипотечный кризис, начавшийся с массового не возврата жилищных кредитов, благодаря необдуманному использованию производных финансовых инструментов, вскоре распространился на весь американский финансовый сектор, а затем и на другие страны. Крупнейший мировой инвестор Уоррен Баффет назвал ипотечный кризис 2008 года в США самым большим спекулятивным рыночным пузырем из когда-либо им виденных – Россия и другие страны не должны зависеть от очередных кризисов, которые происходят из за некомпетентности властей США.
    США готовят новый виток санкций и только поддержка финансового сектора РФ государством может нейтрализовать эти риски.

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