OREANDA-NEWS. December 02, 2009. According to RusRating senior analyst Elena Nikolayenko, positive factors includes the capacity of the Bank’s owners to offer support, a stable circle of larger corporate clients, strong lobbying capacity and political influence within the city of Moscow, a healthy capital base and professional management.

Potentially destabilising factors include risks arising from exposure to the construction industry, which accounts for a large portion of the Bank’s business; reliance on political connections in the city administration; and low profitability.

Mosstroyekonombank (MSEB) is a mid-sized (by assets) Moscow credit organisation, a construction industry specialist and an authorised bank of the Moscow municipal administration, which has traditionally held a minority stake. A controlling interest is held by persons formerly affiliated with M. Gutseriev. MSEB operates a modest network of service centres with a moderate geographic reach. Its market positions are solid and the Bank can draw on established ties to the Moscow construction industry. It is developing a retail business, including a presence in mortgage loans.