CNBC Interview with Andrey Kostin, CEO of VTB bank from Russia

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The negative rates are driving investments to Russia

“… there is a big influx of investment in the Russian bonds, rouble denominated, because there’s so much money available, and because Western institutions provide the negative interest and Russia still provides quite a handsome margin on investment.

He believes that the Russian banking sector is cleaner and more stable

“I think the key word for the Russian banking sector is stabilisation. We will definitely see the improvement in general. On the other hand, we see that the central bank is cleaning up the system by withdrawing another 80 licenses this year, I think, and altogether I think 280 licenses withdrawn in the last three years. So we very much believe that it is now healthy, that the major institutions are feeling much better. For example, the profitability of the Russian banking sector increased seven times this year in comparison with the previous year. So we have definitely seen substantial improvement in profitability and the operation of Russian banks.”

…and that the major banks are well capitalized.

“…I think major Russian banks are quite well capitalized. With the help of the government, because the government introduced quite a big programme for full support of the capital base of Russian banks, both government and private.”

On the US elections:

“We know very little about Mr Trump. You know, we know much more about Mrs Clinton, of course, because she was indeed with the government. So it’s hard to say. At the moment, of course, we feel that Mr Trump is using less anti-Russia rhetoric in his campaign. I think it is good because I don’t think any leader should be should use anti-Russia rhetoric because it doesn’t help when they becomes the president, I think. But it’s hard to say.”

Full transcript at: http://www.cnbc.com/2016/09/21/cnbc-transcript-interview-with-geoff-cutmore-and-andrey-kostin-ceo-of-vtb.html