Andrei Kostin discusses the results of Business 20’s work this year
In an interview with RIA Novosti, Andrei Kostin, VTB Bank President and Chair of the Business 20 Task Force Financial System - Restoring Confidence and Growth, discussed the results of the business community's efforts under the Russian G20 Presidency.
According to Kostin, the economic crisis revealed many weak spots in the global financial system. Among the major outcomes of the crisis are justifiably stricter capital requirements on banks and a more rigorous system for assessing credit risks. The new Basel III standard is the joint response of governments and the business community in G20 nations to the problems that have been identified.
"As we know, the focus of Russia's G20 Presidency has been economic growth and job creation. The global economy remains unstable, and it is particularly important now to support the financial and banking sector's ability to provide the necessary amount of lending to the real economy, even under the new requirements," Kostin stressed.
He noted that at the Summit in St.Petersburg, G20 heads of state and government listened to the opinions of the business community and agreed to continue monitoring and assessing the impact of financial regulatory reforms. This found its way into the G20 Leaders Declaration.
The President of VTB Bank also said that Business 20 offers recommendations on how to encourage small- and medium-sized businesses at every summit. "We know that this is the sector that creates jobs and economic growth. But the growth of small- and medium-sized enterprises largely depends on the ability to access long-term investment," Kostin said. As such, Business 20 has developed recommendations on improving access to financing through the use of partial state guarantees, which will make financial institution more inclined to provide financing.
During Russia's G20 Presidency, the Business 20 Task Force Financial System - Restoring Confidence and Growth has paid particular attention to the stable operation of financial market infrastructure, Kostin said.
"We are certain that greater transparency and better reporting and disclosure procedures will make financial markets more efficient," the President of VTB Bank stressed.
The full version of the interview you can find here (only Russian version)