The bank industry has faced somewhat hard times nowadays, however as usual the crisis makes the lending entities become more professional and efficient. Alexei SHITOV, chairman of the bank's board, shared his opinion in his interview to NBJ as regards the milestones for Zlatkombank in 2013 and the plans for business development in 2014.

NBJ: Alexei Sergeevich, please give us a brief characteristics of the trends at the Russian banking market.

A. SHITOV: Obviously the regulator has explicitly headed for making the order in the banking system. The actions are essential and bankers have nothing to dispute about. We are also interested in raising the transparency of our sector, as it will give a positive effect on all the banks and increase the mutual trust. However, in my opinion, one should take such steps at more tranquil periods. Unluckily, at present our economy enters the slowdown phase, which is expected to last under quite serious effects. It will inevitably affect the banking system.

NBJ: What are the features of 2013 for Zlatkombank?

A. SHITOV: The year of 2013 was quite uneasy, though it gave no material effect on the bank's parameters: we approached the year's end with a profit, increased the authorized capital, and as a result, the loan portfolio and other parameters grew up. Yet, the economic difficulties encouraged us to have grand changes as for attraction of customers and estimation of the clientele base's quality. We updated the IT-systems: owning to it we managed to adjust the business processes, including the acceleration thereof, as well as to reduce the cost of operations. Besides, we formed the regulations on interaction between the departments and implemented the forms of corporate accounting. The bank's decision-making processes became more transparent and of higher quality. Implementation of documenting support for the processes caused a more responsible attitude to all the issues on behalf of the employees. As well, we opened the affiliate in Nizhny Novgorod. In addition, we see the potential for development in other regions thanks to a lower competition level if compared with the capital.

NBJ: Which is the success mission for Zlatkombank under the present situation?

A. SHITOV: We have approved a range of steps. We are focused on the clients from the production area, from diverse industries, including the one in manufacturing of construction materials, electric equipment, spare parts for car and truck industry. We make attractive comprehensive offers for those customers.

Under the conditions of the clientele rotation, due to the fact that a number of lending entities have left the market, we have reduced the corporate crediting rates. We issue the loans of 10, 20, 30 mln, because this way it is more convenient both for us and our customers. It enables the diversification of the portfolio, minimizing the risks of the loans' non-repayment. As well we pay attention to such factor as the seasonability of customers, subject to which we are trying to balance up our loan portfolio. Such mechanism as the loan facility provides a great help in that area both for us, and our borrowers.

NBJ: Which are the goals and objectives of your bank for 2014?

A. SHITOV: The key thing is to withstand and preserve the stable clientele. The year of 2014 will be difficult for the Russian economy. Unfortunately, the results that a number of banks have fallen are dramatic not only for the banking system, but for the business as a whole. The effect goes straight along the chain, whereas the clients of such lending institutions suffer as well. Despite the insured status of the depositors' funds, the cash of SME is frozen up in the banks that left the market. Accordingly, those companies, having lost their cash and gone bankrupt, will not pay to the suppliers. As a result the money is lost, the number of employed is decreasing. This negative process is similar to a snow ball.

Getting back to Zlatkombank, I want to remind that we have serious plans on business development, and as far as it is possible we will carry them out in 2014, in spite of the unfavourable outer conditions.