MOSCOW, April 6 (RIA Novosti) - Restrictions on the share of foreign capital in the Russian banking system is an issue of economic security, the president of the Association of Russian Banks said Thursday.
Garegin Tosunyan said: "The share of foreign capital in Russia's banking system is an issue of economic security and sovereignty, as financial power gives the possibility to influence political power."
Commenting on reports that Russia had softened its position at the talks on its accession to the World Trade Organization, and would increase the limit for foreign capital to 50%, Tosunyan said fifty percent was "too much," as foreign banks could fill the quota very quickly.
According to the association, the share of foreign capital in the Czech Republic and Estonia is near 100%. Tosunyan said developed countries kept the rate at 10-25%, and if Russia allowed higher ceilings, "the dam will be broken fast," and the country will face the fate of other East European countries.
Last year, the share of foreign capital in Russia's banking system almost doubled to 11.15% from 6.19%.
Another prominent Russian banker said the current laws did not mention the quota of foreign participation, adding that laws should be amended for the Russian Central Bank to be protected from lawsuits on the part of foreign banks.
Alexander Murychev, the president of the Association of Regional Banks, said the 25% quota optimal for the current stage of Russia's economic development.
