Takeover of competition

Novaya Gazeta

This article discusses the negative effects that the sale of the Bank of Moscow caused, the main one being reputational damage, which in turn results in the withdrawal of deposits, potential deterioration of the Bank of Moscow rating and worsening of the financial results. According to the experts, the main negative effect from this deal is felt by the Russian banking system as a whole.

This article states that the takeover of Bank of Moscow by the state-owned VTB was not done in accordance with the market laws, especially because the deal was not only politically motivated but also politically influenced. The article concludes that this takeover means that an institution, which was exciting in the banking market for the past 16 years, will be destroyed. This in turn results in clear and systemic decline of competition in the banking industry.Новая Газета