Conducting active operations in the credit and financial markets of Russia, taking into consideration the state of its legal system, is unfortunately associated with a high level of risk. While paying due attention to making a profit, the Bank takes special care to ensure the safety of clients' funds and the unconditional fulfillment by the Bank of its obligations to its clients.

The Bank has traditionally adhered to a policy of reasonable conservatism in the field of credit. Normal practice is to acquire a thorough knowledge and understanding of a borrower's financial position, credit history, problems, concerns, purposes and strategy for economic activity, and a proper evaluation of objective and subjective risks.

The Bank gives credits both in the form of promissory notes (under preferential interest rates), and in rubles and foreign currency, as follows:

• Corporate credit against passports of foreign trade deals;
• Credit against statistical turnover (the objects of credit in this case are enterprises connected with a city infra structure having an extensive network and stable credit turnover - for example, enterprises engaged in electric power production and telecommunications);
• Credit against the security of currency available in specific accounts and in the cash department of the Bank, freely circulating securities, control packets of shares, and bills of clients and of the Bank;
• Credit against the security of gold and silver bullion:
  • in the storehouse of the Bank;
  • in specific metal accounts of the Bank abroad;
  • in refining factories or in the State Center of Special Communications of the Russian Federation;
  • on its way abroad under the commission security of the Bank;
• Mortgage, including loans issued to private persons for housing and cottage construction.

In 1999, banking operations in trade financing were expanded. While issuing credit, the Bank completely controls the client's entire trade operation, beginning with the purchase of foreign currency in the exchange market and opening a letter of credit, up to receipt of the goods in the territory of the Russian Federation and, in some cases, selling the goods. In this case, financing is made only against exchange goods, all rights to which belong to the Bank up to the moment of credit repayment.

As part of its activities, the Bank continues to develop financial leasing, and is the founder of leasing companies registered in Moscow and Moscow area. At present these companies are successfully realizing a number of commercial leases with large road-construction companies, buying for them necessary road-construction equipment made by Russian and Western manufacturers.

The absence of permanent limits operating for the Russian banks leads to our practice of issuing interbank credits only if they are backed by security.

In conditions of major risk, a considerable proportion of assets is allocated on the bank's correspondent accounts with first-class Western banks, because the limiting factor of credit is nowadays not a lack of resources, but a lack of reliable objects for investment. The balance of liquid funds comes to not less than half the total liabilities of the Bank.

The Bank will continue its policy concerning active operations. It offers its clients a wide range of high-level services in the field of credit, focusing on an individual approach and the maximum possible attention to meeting the requirements of each client.