Foreign Institutional Investors Fret Over VTB Bank


VTB Bank, Russia’s state-controlled bank and second biggest lender, faced a drastic loss in profit margin in 2014 and could take sustained losses in 2015 due to Russia’s high interest rates and ongoing sanctions with the West. Along with its larger rival Sberbank, the geopolitical situation in Eastern Ukraine has taken a toll on Russian financial institutions. As a saving grace, VTB Bank received 100 billion roubles from the country’s National Welfare Fund (NWF) in a greater scheme to recapitalize Russia’s banking system.

In 2014, Norway’s Government Pension Fund Global (GPFG) posted a -40.9% in Russian listed equities.

In 2014, Russia’s central bank spiked rates up 6.5% to 17% to prevent a run on the banks and further collapse of the rouble. [ Content protected for Sovereign Wealth Fund Institute Standard subscribers only. Please subscribe to view content. ]

Contact the writer or creator of this article or page.
Questions or comments: support(at)swfinstitute(dot)org
Follow on Twitter at @swfinstitute and @sovereignfunds
Learn, Attend and Network: Institutional Investor Events and Summits
Go Back: HOME: Sovereign Wealth Fund Institute

institutional investor investment mandates