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. Last Updated: 07/27/2016

Private Banking on the Rise

Private banking and wealth management, while starting at low levels in Russia, will grow as quickly as 50 percent per year for the next several years, according to a report released Tuesday.

Some $10 billion to $12 billion in personal wealth is being managed by private banks and similar money managers today and that number will grow by 30 percent to 50 percent per year, said the report by PriceWaterhouseCoopers.

Five of the 18 banks surveyed said they required private banking clients to have at least $100,000, but some banks require $500,000 or even $1 million for this personalized level of investment and banking service. The banks currently have fewer than 10,000 private banking accounts in all, and most do not yet offer complete tax planning or inheritance services, which are standard in the West.

Buoyed by a flood of cash from oil and gas exports, the total financial assets of all Russians is expected to grow at 12 percent per year through 2010, according to a recent report from the Boston Consulting Group.

To be sure, Russia and the other so-called BRIC countries are still playing catch-up in the world's wealth race: In 2005, Russians boasted just $558 billion in financial assets, compared to $12 trillion in Japan and $31 trillion in the United States, according the consulting group.

The banks included in the PwC survey were Credit Suisse, DeutscheBank, HSBC private bank, UBS, Hansabank, Pictet, Alfa Capital, Bank Globex, Zenit, Bank of Moscow, Troika Dialog, UralSib, International Moscow Bank, Petrokommertz, Nomos Bank, Gazprombank, Impexbank, and Renaissance Capital. Not all currently offer private banking in Russia.