Most demanded corporate banking services

31.03.2010

 

The National Agency for Financial Studies (NAFI) carried out a research on the  availability of financial services to Russian companies . The most striking results are as follows:

A vast  majority of Russian companies  use banking services for  settlement and cash operations in  national currency  (78% of the interviewed companies), loans and bank card transactions (salaries) (60% for each). Approximately one third of the companies use leasing (35%), online banking service "Internet-bank" (34%), other remote banking systems (36%), and cash collection services (33%). Around one-quarter of enterprises use international settlements and foreign exchange control (25%), as well as letter of credit (23%);. Around one-fifth  use term deposits (22%) and securities operations (21%).

T84% of the Russian  companies contracted credits with their banks  in the current year. However, the less number of employees the company has, the rarer its executives apply for a loan (69% of companies with 30 staff members versus 92% with 300-499 staff members).

According to the research data, most executives marked that it has  become much more difficult to  obtain a credit from the bank over the recent year (64%). Around one-quarter of respondents mentioned that the entire procedure has become more  complicated  (26%). On the contrary, 12% of the  companies say that is became    easier to get credit from a bank.

It should be  mentioned that 70% of ; those who noted that  the  procedure to obtain  credits became more tightened   are heads of medium-sized enterprises (100 - 300 staff members)  On the other hand those who mentioned the   loosening of credit procedures are heads of large enterprises (300-500 staff members) - 19% of respondents.

Most of  the companies reported that  it has become more expensive to  obtain  a credit (67%) and one quarter   of  the executives (25%)  find that credit conditions have become "much more expensive". Eight percent of the respondents pointed out that credits to companies has become  cheaper. It is interesting to notice that most (72-74%).of those who say credit services have  become expensive  also complained that  the whole procedure has become more  difficult : they are heads of medium-sized enterprises (100-300 staff members) -

The on-line survey was conducted in October 2009.

1100 heads of enterprises of the Russian Federation were interviewed in 33 regions of Russia.

Table 1. Distribution of answers to the question: "Which banking services does your enterprise use?", % of those who answered the question

Settlement and cash operations	78
Loans	60
Bank card transactions (salaries)	60
Other remote banking systems (Bank-Client and etc.)	36
Leasing	35
On-line banking system "Internet-bank"	34
Cash collection services	33
International settlement and foreign exchange control	25
Bank guarantees and letter of credit	23
Term deposits	22
Securities transactions (buying and selling of stocks, bonds, promissory notes)	21
Trade finance	12
Overnight deposits	9
Factoring	8
Reducing currency risks with hedging	6
Acquiring	5
Placement of syndicated loans and bonds	3
Other	0
Hard to tell/refuse  to answer	4

*the sum of answers exceeds 100%, as the question allows multiple answers

Table 2. Distribution of answers to the question:"How the procedure for obtaining a credit for your company has changed over the recent 12 months", % of the interviewed enterprises

It has become much more difficult  to obtain a  credit	26
It has become more difficult to obtain a credit	38
It has become easier to obtain a credit	9
It has become much more easier to obtain a credit	3
Our company has not applied for a credit over the recent twelve months	16
Hard to tell/refuse to answer	8

Table 3. Distribution of answers to the question: "How the procedure for obtaining a credit for your company has changed over the recent 12 months", depending on the number of personnel, % (by column) of the interviewed enterprises

	Total	less than 30	30 - 99	100 - 199	200 - 299	300 - 499	500  and more
It has become more difficult to obtain a credit	64	52	57	70	70	65	65
It has become easier to obtain a credit	12	6	13	9	12	19	12
Our company has not applied for a credit over the recent twelve months	16	31	21	14	14	8	14
Hard to tell/refuse to answer	8	10	9	8	4	8	10

Table 4. Distribution of answers to the question: "How the procedure for obtaining a credit for your company has changed over the recent 12 months in terms if its cost", % of the interviewed enterprises

It has become much more expensive to obtain a credit	25
It has become more expensive to obtain a credit	42
It has become cheaper to obtain a credit	7
It has become much more cheaper to obtain a credit	1
Our company has not applied for a credit over the recent twelve months	16
Hard to tell/refuse to answer	9

Table 5. Distribution of answers to the question: "How the procedure for obtaining a credit for your company has changed over the recent 12 months in terms if its cost", depending on the number of personnel, % (by column) of the interviewed enterprises

 

	Total	less than 30	30 - 99	100 - 199	200 - 299	300 - 499	500  and more
It has become more expensive to obtain a credit	67	57	60	72	74	69	66
It has become cheaper to obtain a credit	8	5	9	5	9	18	6
Our company has not applied for a credit over the recent 12 months	16	31	23	15	14	8	14
Hard to tell/refuse to answer	9	7	8	8	4	5	13