Real interest rates as high as 50% on many consumer loans, says Richard Hainsworth of RusRating, mean big profits despite the not infrequent defaults.
ECONOMIST: Russian banks
2.
Richard Hainsworth of Renaissance Capital, a Moscow investment house, estimates that Russians still keep anywhere from half to nearly twice as much money under their mattresses as they do in the bank.
ECONOMIST: Russia's economy
3.
But now, says Mr Hainsworth, a couple of commercial banks are blocking it, maybe because they fear new regulation, maybe because they want to spend money building up their brands before they pay for insurance.