04 June 2004 20:48
Banking sector capital up more than 40% in 2003 - Zhukov (Part 2)
MOSCOW. June 4 (Interfax) - The equity of Russian banks soared more than 40% in 2003, Deputy Prime Minister Alexander
Zhukov said at the Corporate Governance and Economic Growth conference.
"The role that borrowed capital is playing in investments is growing fast," Zhukov said.
Companies themselves are the main sources of that capital. "But the government believes putting borrowed money
aside for investments is one of the main aspects in banking sector reforms which will result in major investment growth
in Russia," Zhukov said.
The Cabinet is due to discuss and approve a banking sector development strategy this summer, Zhukov said.
Zhukov also said stock market capitalization had soared 1,300% in the last five years. "The last few years have
seen a revolution here," he said.
The market is volatile at the moment. It grew at the start of the year, fell back in April-May and is now steady,
Zhukov said.
"I think the Russian stock market is strongly undervalued and has good prospects for growth," Zhukov said.
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