The project is co-financed by FMO, the Netherlands Development Finance Company that supports the private sector in emerging markets. The project will last 12 months during which a team of RAS specialists will be working both on-site as well as off-site.

Russian banks face significant risk management challenges and URSA Bank is determined to further improve its risk management systems and culture to underpin its ambitious growth plans in both retail and corporate banking. Retail banking is booming in Russia as the expanding middle class use more financial products. Lack of credit history is often an issue, and the safe expansion of a retail portfolio requires both the right tools, such as credit scoring, and strong governance, especially around consistency of credit decisions. Any bank board need to be satisfied that underwriting policies are adhered to across all branches. In corporate and business banking, broader economic growth in Russia means increased opportunities for lending to SMEs and mid-size corporates in a variety of industries.

Headquartered in Novosibirsk, URSA Bank is the result of a recent merger between Sibacadembank and Uralvneshtorgbank. The management of URSA Bank views the implementation of international best practices in risk management as being of strategic importance. The project will support the bank in its efforts to further improve its competitiveness, enhance capital management and raise its profile with international investors. ABN AMRO RAS will be assisting and consulting URSA Bank throughout the change process, by sharing its knowledge, tooling and experience with their staff. In addition to the business benefits, this work will also mean that URSA Bank will be highly prepared for Russia's adoption of Basel II.

John McNaughton, Managing Director of URSA Bank said: "URSA Bank has been growing very fast over the past year and we're confident it will continue to do so. The Managing Board believes that further improvements in risk management are essential to guarantee a healthy and sustainable growth of the bank. We are very pleased to work with ABN AMRO Risk Advisory Services, as their practical assistance in implementing best international risk management practices is exactly what we need."

Cris van Kempen, the Regional Head of ABN AMRO Risk Advisory Services added: "For banks in Russia, good risk management, and a strong risk culture, are essential for good corporate governance. Some banks have got into difficulties with loan portfolios, and retail banking in Russia is seeing such revenue growth that losses can be hidden by revenue growth, at least for a while. URSA Bank is a fast growing and well positioned regional player, and our work will help ensure it does not make these mistakes."