OREANDA-NEWS. September 10, 2012. Sberbank, the leading Russian bank, and BNP Paribas Personal Finance, the consumer lending division of the BNP Paribas Group and leading provider of consumer loans in France and Europe, announce the successful finalization of the creation of their joint Russian POS (Point of Sale) finance bank, reported the press-centre of BNP Paribas Group.

Following the closing of the transaction, the joint bank – CB "BNP Paribas Vostok" LLC – will operate under the Cetelem brand. Sberbank has a 70% stake in the bank with the remaining 30% stake being owned by BNP Paribas Personal Finance France, which owns the Cetelem brand.

The joint bank is headed by Andrey Lykov, former advisor to President and Chairman of the Board of Sberbank.

The transaction has received all necessary approvals from Russian and foreign regulatory authorities.

The joint bank will use a concept of “responsible lending” developed by Cetelem and supported by Sberbank that looks to provide simple and transparent products with reasonable interest rates which will also benefit the successful growth of the Russian POS market.

“Establishing the joint bank with Cetelem is the optimal way for Sberbank to gain a presence in the POS finance market remained one of the few significant financial markets where Sberbank did not work,” said Denis Bugrov, Senior Vice President of Sberbank. “As of today Cetelem occupies a good position in the POS finance market with a 4.5% share, and the newly launched bank will allow us to initiate a strong development programme which will enable us to take up a leading position in the Russian POS market.”

Alain Van Groenendael, Deputy CEO of BNP Paribas Personal Finance, also commented: “This major agreement on the fast-growing Russian market confirms the partnership capabilities of BNP Paribas Personal Finance. This joint venture with Russian n°1 banking actor consolidates the presence and the business of our group in this country on the long term. Our joint bank is now in a position to build more agreements with retailers and expand its ability to finance Russian raising consumption.”