OREANDA-NEWS. January 19, 2010. According to RusRating senior analyst Larisa Makarenko, capital adequacy is high and capital quality is healthy.

Corporate and retail client resources account for the bulk of liabilities; concentration by individual client is elevated but on the whole funding stability is rated favourably given historically stable balances and long-term ties to key clients. Asset quality is satisfactory. Profitability is healthy. Overall risk sensitivity is moderate. Current liquidity is sufficient and risks to liquidity appear modest given the structure of the balance sheet.

Positive factors include a stable client base, shareholder support, high capital adequacy and strong interest margins. Potentially destabilising factors include the concentration of external funding by individual (major) client and growing credit risks.

Bank Forshtadt is a mid-sized (by assets) private-sector bank, one of the largest banks in the Orenburg region, that operates mainly in the Volga and Central Russia federal districts. Most shares are held by private individuals with other business interests, including assets in the oil, gas and petrochemicals sector. The Bank focuses on working with corporate clients, some of which are affiliated companies, and a retail business is also being developed. It is moderately active in the securities and financial markets. Strategy calls for the further development of its corporate business, with an emphasis on SME services, as well as retail growth.