Rus News Journal

Small-scale business new possibilities

to Banks wait for interesting it to finance despite crisis

World financial crisis has forced banks to concern more carefully risks of crediting of small and average business and has led to some growth of rates in the market. Nevertheless the segment remains interesting so, the competition will grow in intermediate term prospect, and credit conditions become more flexible.

in 2007 bank crediting of small and average business has shown explosive growth: the portfolio of credits has increased by 62 % and has reached 54,1 mlrd dollars Thus credits directly to small-scale business have grown almost twice, to 21 mlrd dollars the Segment is interesting today to many banks, but the five of leaders on a portfolio of credits form the Savings Bank, VTB 24, the Renaissance KMB - bank and Uralsib (tab. 1) see. At the same time on the market there are also new participants - they are involved for the present with low level of a competition and higher credit margin in comparison with products for the large enterprises.

mistrustful kids

Results of development impress, however small businessmen do not divide euphoria of bankers: there is an opinion what to have the credit for business development in bank on - former difficult and expensively. As consequence, demand for extra financing from small-scale business flows away in adjacent segments. If investments into fixed capital are required, businessmen address to the leasing companies. If it is necessary to operate cash ruptures, it is possible to use faktoringom. At last, if the credit for business expansion it is possible to act and as the retail client of bank - to take a mortgage, the autocredit or even the credit without pledge is necessary simply.

Switching of borrowers on alternative bank products - the most disturbing tendency for development of bank crediting of small-scale business. That with it to struggle, it is necessary to improve constantly parametres of credit products for the small and average enterprises. Perfection while goes in two directions: development of regional networks and working out of the new, interesting grocery offers, which else is not present in the market. The price and conditions banks do not compete - world financial crisis has raised rates and has forced to look at risks more steadfastly.

time of changes

Meanwhile cost of the credit, the requirement to borrowers and conditions (first of all on pledges) - key parametres by which potential clients are guided at a bank choice. In the beginning of 2008 of the rate under credits for small-scale business on the average on the market made 17-19 %.

Today dynamics of rates is influenced by two raznonapravlennye tendencies. The first - gradual strengthening of competitive pressure in the market and aspiration to offer more favourable price in comparison with competitors. The second - growth of cost of loans worldwide, including in Russia. Cost fondirovanija for banks grows - accordingly, they should raise rates for the borrowers. Besides, banks frequently aspire to operate on an advancing and to raise rates under credits hardly earlier, than for them attraction cost will grow. The second tendency now makes on the market stronger impact, than the first, therefore, most likely, rates on the average on the market till the end of the year will grow on 1,5-2 items of the item

Credit conditions in the near future to be softened also will not be - other important consequence of crisis expressed in strengthening of attention to risks taken up here operates. It is possible to draw a parallel between development of crediting of small-scale business today and retail crediting 3-4 years ago. Then, developing retail, banks went on the maximum softening of requirements to borrowers as the conjuncture was favorable, and the main objective put fast capture of the new market. Today the conjuncture does not promote scale credit expansion, it is necessary to supervise risks and to approach to an estimation of borrowers more conservatively. Therefore banks do not go on softening of conditions for small enterprises. As demand for crediting on the market as a whole now essentially exceeds the offer, therefore it is possible to dare to approach to selection of borrowers more captiously.

absence of good mortgaging maintenance at small businessmen becomes an acute problem in new conditions also. According to bankers, this factor, along with low level of a transparency of borrowers, even prior to the beginning of crisis acted as the essential terminator for market development (tab. 2 see). And if small businessmen are capable to solve a transparency problem in short terms the problem of pledges, as a rule, quickly does not dare. Low mortgaging base it will be essential to constrain the further development of the market - and so the limited circle of maintenance under which banks are ready to grant the loan, was now narrowed even more. Today as the most good pledge the commercial real estate which at small enterprises in the property practically is not present acts.

Demand searches for the offer

the Majority of banks today are ready to work only with clear risks, and it means that the most attractive clients are trading enterprise and the processing manufactures, doing transparent business and capable to give good maintenance. But it does not mean that other borrowers need to search for alternative sources of financing or quickly to solve a problem of pledges. Anyway in the market there are participants, on - former ready to work with atypical risks.

in - the first, it is necessary to remember that banks - leaders of a segment nevertheless are aimed at more wide range of branches. They have the debugged technologies of work with borrowers and experience of an estimation of credit status of the enterprises of building, transport, sphere of services. In - the second, potential borrowers need to watch those banks which just now enter the market and start active advertising campaigns on attraction of new clients. If these banks, despite an adverse conjuncture, nevertheless have dared to leave in a segment, means, to them for certain is what to offer small enterprises from the point of view of credit conditions. At last it is necessary to pay attention to those credit organisations which are participants of any government programs on support of small and average business. After all budgetary support always means more attractive terms of financing.

as to intermediate term prospect (the nearest two - three years), it is possible to be assured that the competition factor in a segment of crediting of small and average business nevertheless will be stronger than an adverse conjuncture. So, rates and conditions gradually become more flexible, and borrowers will already choose to themselves the most favourable creditors.

TABLE 1. RENKING BANKS ON VOLUMES of PORTFOLIOS of CREDITS to SMALL-SCALE BUSINESS

65,67

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11

Zapsibkombank

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25

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Alpha bank

1 150 247

N

Bank

the Portfolio on 01. 01. 08, thousand rbl.

Rate of a gain to 01. 01. 07, %

the Place in renkinge, 2006

position Change, +/ -

1

the Savings Bank of the Russian Federation

436 000 000

51,49

1

-

2

45 081 358

119,47

3

+1

3

the Renaissance

35 197 500

27,22

2

- 1

4

KMB - bank

4

-

5

Uralsib

13 887 000

-

-

6

URSA Bank

8 898 000 < vAlign=top>

7

+1

7

LOKO - bank

8 667 071

137,47

10

+3

8

MDM - bank

8 081 650

83,55

< vAlign=top>

- 2

9

Promsvjazbank

7 991 366

107,39

9

-

10

Rosbank

7 760 021

34,55

5

NB the Trust

6 882 148

202,82

11

-

12

Akibank

5 653 700

34,79

8

- 4

4 401 208

-

-

-

14

Tatfondbank

3 059 000

53,87

12

- 2

vAlign=top>

2 940 043

492,56

23

+8

16

Hlynov

2 809 674

79,51

13

- 3

17

vAlign=top>

88,63

15

- 2

18

Russia - bank

2 544 402

253,11

20

+2

19

NOMOS - bank

2 407 000

vAlign=top>

30

+11

20

GB Nizhni Novgorod

1 757 916

71,53

16

- 4

21

Chelindbank

1 705 657

18,52

14

- 7

22

special design bureau - bank

1 684 000

-

23

Probusinessbank

1 662 443

143,51

21

- 2

24

the Union

1 625 156

60,11

17

RBR

1 559 547

296,05

24

- 1

26

the Alto - bank

1 533 321

58,19

18

- 8

1 436 410

-

-

-

28

Strojkredit

1 425 120

-

-

-

29

208,99

26

- 3

30

Regional bank of development

1 005 163

18,10

19

- 11

31

Baltinvestbank

< vAlign=top>

-

-

-

32

Ekspobank

769 959

-

-

-

33

St.-Petersburg

767 700

- 5

34

Metkombank

649 599

145,83

29

- 5

35

Juniastrum Bank

637 027

-

-

-

the Source: Expert RA An estimation according to banks - participants of research

TABLE 2. BANKERS

the Place on importance

the Factor interfering development of the market

1

Opacity of borrowers

2

Absence of mortgaging maintenance

3

Bad quality of mortgaging maintenance

4

Backwardness of subsidising of credits within the limits of state programs

5

Backwardness of the legislation

6

Insufficiency of development of filial networks of banks

7

Absence at small-scale business of understanding of an essence of bank products

8

Insufficiency of the experience turned out by banks

9

Shortage of qualified personnel

10

High interest rates under credits

the Source: Expert RA poll of ten banks - leaders in a segment as of 01. 01. 08