Economic Development Ministry will suggest measures to increase large banks' capital - Ulyukayev

Russian Trade and Economic Development Minister Alexei Ulyukayev believes there is a need to take a number of measures to increase the capital of large banks.

Russian Trade and Economic Development Minister Alexei Ulyukayev believes there is a need to take a number of measures to increase the capital of large banks.

"I know for a fact that we should do two things for the markets. It's capital increase, no doubt, we should increase the capital of banks, including the first and the second level. We have now converted the subordinated loans for two banks, which were second level capital, to first level capital. We should do it for everyone, there were 17 banks top which it may apply, we should at least offer that to all banks. Secondly, we should do it to provide new subordinated loans and increase the second level capital because the ratio of first level capital and second level capital should now be one to one, and now there is a big gap there," he told reporters at the Sochi 2014 forum.

"Thirdly, we should make additional investment in the capital, primarily [the capital of] state banks. It seems to me there are two mechanisms for that, and both of them are quite workable," he said.

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