During the last year the regional banks did not only proved their viability but also showed a growing potential. Irina EGOROVA, Acting Chairman of Management Board of Stavropolpromstroybank, shared with NBJ about the ways that financial companies can use in order to grow their shares of the banking services market.

NBJ: Irina, Stavropolpromstroybank significantly grew in the rating for assets volumes and aggregate loans portfolios from 1 April 2014 to 1 April 2015. Could you tell us about the ways that the bank used to attain such performance.

I. EGOROVA: In December 2015, Stavropolpromstroybank will celebrate its 25th anniversary. Having rich experience in the regional banking services market and using such competitive advantages, as customer focus, flexibility and expedient decision making, as well as conditions for loans provision, the bank has managed to satisfy the demand and needs of its customers in the most optimum way. It is the regional banks that have a knowledge of the regional markets and experience in working with the real sector, who can offer the optimum conditions for the credit products. In order to meet the customers requirements, the bank has actively provided bank guarantees, loans for bidding applications, loans for working capital replenishment (contracts performance).

In addition, during H2 2014 Stav-ropolpromstroybank concluded the agreement with "MSP Bank" JSC concerning the provision of credit products to SMEs on rather attractive conditions with regard to the interest rates and loan term. The bank has also implemented the program in cooperation with State Unitary Enterprise Insurance Company "Guarantee Fond for Support of SMEs in the Stavropol Region" concerning loans provision based on the surety from the fund.

NBJ: An increase in loans is a difficult task during the period, when the demand for loans from both individuals and legal entities has decreased (triggered by a decrease in income), while the cost of borrowed funds has increased. How did the bank manage to find the mechanism to convince its customers to take out loans?

I. EGOROVA: It is true that during any crisis, accounting for liquidity decrease on the financial market and an increase in credit risks, credit organizations provide less loans.

However, Stavropolpromstroybank, having a stable resource base and maintaining the policy, focused on building up long term relations with customers rather than deriving a quick profit, was capable to provide financing to the region’s companies in the current economic layout. The bank has built up its cooperation with customers based on customer-tailored solutions, accounting for objective market conditions and customer’s business effectiveness.

Stavropolpromstroybank is willing to support its customers that continuously develop their businesses. And any crisis is the time, when we need to take an active approach and look for out-of-the-box solutions. The demand for credit resources would generally increase above the average levels during such periods of time. The most important factor, impacting the relations with the customers, is the need to balance the proposals and a well-weighted approach to risks evaluation.

NBJ: How important is the risks management for the bank?

I. EGOROVA: The adequate risks assessment is a very important aspect in the bank’s work. The rightly selected approach to the assumed risks assessment gives a chance to perform the quality works with our customers and partners, to whom we can offer the instruments, featuring a balance of risks and profitability rates, while ensuring a maximum margin of economic safety of the bank.