Subsidiaries are generally acquired in the Bank's countries with popular local brand. These banks have become prime candidates for sale in the event of a loss of interest of the parent to this market and the deterioration of its financial situation. In Eastern Europe, used, and sometimes even co-existed two legal forms. Thus, the Citibank branch in Poland for some time acted in parallel with the purchased parent office large Polish bank Bank Handlowy w Warszawie, until the last of the first integration under the Polish brand.
Unusual for Eastern European example of a country that has taken in the 1990s on a principled position against the penetration of foreign capital into the national economy, is Slovenia. Thus, it is one of the most successful from the standpoint of economic indicators.
If we talk about the banking system, the result is a coherent policy for the rehabilitation and strengthening of banks by the end of the 1990s in Slovenia based on local ownership has developed quite a healthy and stable banking system. Slovenia has only recently (in the EU accession) went on deregulation of capital imports. The activities of foreign banks in Russia Perhaps in no other country has had such a powerful political confrontation on the activities of foreign banks in Russia. Supporters of the admission of non-residents stressed that the entry of foreign banks will contribute to the development of fair competition, increase transparency of the banking business, the import of advanced banking technology and quality management.
Opponents defended the point of view of the unwillingness of Russian banks compete with foreign financial institutions, and called for the establishment of at least temporary restrictions on the operations of banks with non-residents in the country. The struggle went on with varying success. Individual tactical successes achieved opponents of the admission of foreign banks.
In its asset they can write, first, 12 per cent quota for banks with non-residents in the aggregate authorized capital of the Russian banking sector. Second, the presidential decree number 1924 of 17 November 1993, which the banks with foreign participation, created after October 15, 1993, it was forbidden to serve residents' accounts of both legal entities and individuals. Third, unmotivated facto ban Bank of Russia for the opening of branches of foreign banks in the country. Largely under the influence of this firmly established in the public mind the false impression that the Russian authorities to prevent the inflow of foreign capital in the banking sector.
In fact, the conditions and procedure for access of non-residents in the domestic banking system in many ways milder than in most other countries. In essence, in the Russian acted and continues to act moderately liberal approach to the registration and licensing of credit institutions with foreign capital. In favor of this speaks eloquently of the fact that the licenses were all foreign banks that their request addressed to the Bank of Russia. The exception to this rule are only prohibitive de facto, but not de jure, the procedure of opening of branches of foreign credit institutions.
As far as the stereotype of an unwillingness to provide access for foreign banks in Russia, the facts are, with few exceptions, did not confirm this. However, significant damage to the image of Russia has already caused the above-mentioned decree of the President of the Russian Federation ? 1924 of November 17, 1993. This decree for the period up to 1 January 1996 it has been found that the subsidiary banks, and the banks in which the share of non-residents in the share capital exceeding 50%, not started servicing residents of the Russian Federation as of November 15, 1993, and received a license after that date can only make transactions with legal entities and natural persons who are not residents of the Russian Federation.
Thus, introducing a temporary moratorium for banks with foreign capital participation in the service of the Russian clientele. This severely limits their activities in Russia and placed in the notoriously unequal conditions.
It should be noted that these measures led to a backlash in the IMF and the World Bank, the U. S. and the EU, as well as in the international business and financial circles. In particular, in the preparation of a new EU-Russia Agreement on Partnership and Cooperation Agreement, which was signed in 1994, Russia agreed not to reduce for 5 years, the share of foreign capital in the banking capital of the country, and then to consider the possibility of increasing it. Commitment was made to apply the prohibition of banks with foreign capital transactions with residents only until January 1, 1996, as it was provided for by Presidential Decree number 1924 of November 17, 1993.