OREANDA-NEWS. May 18, 2010. The Senior Banker of the European Bank for Reconstruction and Development, member of the Supervisory Board of Megabank, Alexander Saveliev, being in a working visit to Kharkiv, gave a brief interview to our visitors, reported the press-centre of MEGABANK.

- How do you assess the results of the Bank in 2009?
- I believe that the results are very positive especially taking into account the situation in the market in 2008-2009. Even without the funding from international institutions Megabank survived crises in an appropriate manner. This is the most likely the indicator of sober, conservative policies which the Bank followed the past five years. Of course, now the main task is to begin to grow together with the market. I think, the market will finally come alive in the first half of 2011 and will revive in the second half of this year. In different countries it goes in different ways but the most analysts agree that Russia and Kazakhstan will start to come really alive in the second half of 2010, and Ukraine, most likely, will do it in 2011.

- What can be considered as signs of recovery?
- With a view to banking system these are a return of capital market, an intensification of interbank, a growth of needs of bank’s clients (corporate and retail) to obtain additional credit facilities. Now, many banks are on liquidity, and Megabank, and virtually all other banks too. This is due to the fact that a demand for credit services exists but as a rule it comes from clients who have difficulties with creditworthiness. Those who do not have problems with creditworthiness don’t need crediting. They also “sit” on the excess liquidity. This is because their customers do not need such level of products. Ultimately everything will depend on the final consumer. So if a retail market grows, the financial responsibility of population will return. It won’t return immediately, but would begin to approach level before crisis. The industrial production also will grow and then the market will begin to revive.

- What should banks to do? Should they reduce requirements for borrowers or wait improvement of situation?
- I think, nothing can be done – we should to wait. This isn’t expected to be the most profitable year for all banks, but, nevertheless, it is necessary to wait. There are two roots in this situation: the first – customers do not need money because they do not see how to expand the production further, and retail customers may not require this level of certain products. And there is simply so-called crisis shock, they fear take credit funds now. This second reason is likely stops to play any role: the longer the market is in positive zone, and it is rather long time in this zone, the more clients will gradually recover from the shock, and feel themselves more comfortable to borrow new funds. This in its turn will influence the decision of the first problem, when there isn’t anything to invest in. As soon as a desire to take up a new credit funds arises, demand also rises per se.

- Megabank is rebranding now. What do you think about a new look of the bank?
- Positively. I believe that the new image corresponds to the way the bank sees itself, what it should be in 4-5 years. I think, it’s true that we are working together on strategy and re-branding because as a whole this will give the maximum result. Rebranding generates certain expectations of the customer base, it positions the bank in a certain way, and then this positioning will coincide with real experience which a client receives communicating with the bank. And ultimately this is one of the tasks of the new strategy.

- Will a psychological factor influence on the perception of a new image of the bank because people saw one bank, and now it becomes different?
- I think the existing customer base of the bank quite a long time, its relationship with the bank has stepped far beyond a visual perception. I suppose, a new image will only be positive for new customers. It is novel, more dynamic and more modern.

- How does a new strategy develop?
- I am in the team on developing a strategy for the bank for the next five years. This is a long process - it takes at least a year. The first meeting of the working group was, we have agreed on the principles of development of the strategy, studding the activities of the bank lately. It is needed to do a market research, and on this basis identify the major industries and products of the bank’s further specializing. Then we outline the quantitative and qualitative goals, which the bank must achieve within five years. We expect the strategic plan to be within next year. It will be perfect, if the strategy would be approved by the Annual shareholders meeting in April next year.