Trade rules by Jack Schwager


The third rule

You care, where the bank invests your money. Russian banks make their money primarily on commercial lending to corporate clients. Thus, the depositor of the bank to some extent act as a lender of the real economy. He is known to be very heterogeneous - there are quite a thriving enterprise and hopeless bankrupt. A specific feature of the Russian economy - the size incompatibility leading industrial companies, especially for raw materials, and servicing of commercial banks. Enterprise, which can be called the Hamburg score big, work with small by world standards, and banks. As a result, in order to lend to industry giants, Russian banks often lack the capital (statutory limit of the Central Bank's credit exposure to any one borrower 25% of the capital). In this situation, many banks or circumvent regulations through various tricks, or lend to its limits a limited number of companies. In any case, there is an excessive concentration of credit risk, risk concealing the sharp deterioration in the financial position of the bank in case of default of a single large borrower. The ideal option for you is to get detailed information about the structure of the loan portfolio. Such information, however, is often not available. So you better, other things being equal (see Rules 1 and 2), to give preference to banks that lend mostly medium and small business. This profile is more laborious and less profitable for the banks, however, experience has shown that the risk of bankruptcy with a much lower.

Rule Four

Interest on deposit - a payment for your risk. Gone for a time when the financial pyramid (some of which had a banking license) lured investors interest, the value of which had nothing to do with the realities of the market. Now the majority of Russian banks in its interest rate policy in retail deposits is primarily focused on the rate of Sberbank. These commercial banks usually offer a small premium to be able to somehow compete with the leader. Bet "Sberbank plus 1-2%," can now be described as average. If the bank offers such interest and in line with 1-3, then you can try to trust him with their money. Higher interest rates, especially in combination with aggressive advertising, may mean that the bank is currently in dire need of money. And it is possible that when the time for the return of your deposit, the lack of funds from the bank will be catastrophic. Special procedure for setting interest rates on private deposits typical of the few subsidiaries of foreign banks in Russia, who work with the public. These banks offer depositors the lowest rates in the market - about half that of the Savings Bank, but, nevertheless, recently exhibited impressive growth rates of retail deposits. The reason is simple: the people who are concerned, above all, the preservation and not augmentation of their savings, according to foreign "daughter" more reliable than homegrown banks. In general, sharing this view, I want to draw the attention of potential investors that the subsidiaries of foreign banks registered as Russian financial institutions and subject to all the unpredictable risks to the domestic market. Therefore, an absolute guarantee return of your contribution, especially in the case of financial turmoil, there and here.