Many Russian and foreign banks and financial companies currently experience rigorous liquidity and capital adequacy shortages due to their severe losses caused by the current credit crunch, prices slump in the financial markets, underestimation of risks by the management of those financial institutions.

Just in few days we witnessed the bankruptcy of Lehman Brothers, instant sale of Merrill Lynch, bailout of two largest US mortgage corporations and one of the largest international insurer AIG with the use of the US budget funds, rapid transformation of Goldman Sachs and Morgan Stanley into commercial banks…

In Russia, several largest banks have faced difficulties with fulfillment of their obligations. KIT Finance and Svyazbank are bailed out by the Russian state owned banks, Renaissance Capital was sold instantly, several medium sized banks halted their routine transactions.

The Executive Board of Bankhaus Erbe AG is glad to note the correctness of the Bank’s strategy aimed at risk minimization. Once again it was justified in the current severe markets.
Bankhaus Erbe has not been influenced by liquidity crisis or drop of financial markets and will stick to its policy:

1. The Bank has never had its own portfolio of securities (shares, bonds, etc), consequently it has not experienced any losses or provisions originated from the slump of securities;
2. The Bank has never attracted either interbank loans or any other kind of financing from loan markets, consequently its liquidity has not been effected by the halt of interbank loans market in Russia;
3. The Bank ceased all the limits for interbank lending to Russian banks in August, 2008, consequently it has not been influenced by delinquencies to pay back interbank loans by some large Russian banks;
4. The Bank has no non performing loans, it does not lend to retail customers, small or medium sized businesses.

The Executive Board of Bankhaus Erbe AG assures the clients and business partners of the Bank in its commitment to the principles of risks minimization, support of high financial stability, liquidity and capital adequacy well above the levels, set up by the Bank of Russia for the Russian banks.