RIA NOVOSTI. The pace of consolidation in the Russian banking sector in 2011 could exceed the record rate of 2008 when over 6% of banking assets were under consolidation, director of the Russian Central Bank’s department for licensing and rehabilitation of lending institutions Mikhail Sukhov said on Tuesday, as RIA Novosti reported.
According to him, since early 2010 18 Russian banks have already merged with 12 banks, with this process exceeding 6% of the banking assets. “In 2011 M&As will continue at the same pace, and by the scale and the portion of assets involved the scope of M&A transactions could be even wider," Sukhov pointed out.
He believes that the only hurdle on the road of consolidation is the legal provision that prohibits joint stock companies to take over limited liability companies. But this prohibition does not bury takeover opportunities, but just results in delays of three to four months, Sukhov specified.
