Recent ruble stabilization, falling attractiveness of dollar nominated assets, rapid development of consumer loans, as well as a number of other factors, resulted in decreasing interest rates for loans, given by banks, in the first half of 2007. But, due to current credit crunch and turmoil in the international financial markets, we can see soaring borrowing rates and lack of liquidity in the largest Russian banks since August 2007.

The Bank is not exposed to the said lack of liquidity because of our stable base of clients (individuals and corporations) and the absence of loans and other forms of financing, attracted from foreign lenders. This circumstance considerably reduces loss-of-liquidity risk and market risks, in particular, interest rate risk for the Bank. Moreover, the Bank does not engage in retail loans for individuals, which also essentially lowers main risks for the Bank.

The main strategic challenges of the Bank in these market conditions are:

• Sustain achieved competitive advantages due to high reliability and level of services to Private banking individual clients and large corporations;
• Expand in the sectors of Private banking services, wholesale lending for corporations and foreign exchange operations;
• Maintain a steady client base;
• Correspond with the criteria for members of Compulsory Deposit Insurance System.

We rely on the following resources to achieve our goals:

• Large corporate clients from food commodities, agricultural products processing, wholesale food trade, logistics, textile manufacturers and traders, suppliers of construction materials, equipment manufacturers;
  Loyal individual clients;
• Compound and individual approach to serving a client;
  Qualified employees;
• Costs reduction;
• Efficient consideration and fast feedback on applications;
• Flexibility in client relations;
• Competitive terms and conditions;
• Updated information and latest computer technologies;
• Legal and financial advice to a client;
• Highest level of liquidity and financial stability.