Thread by @SAH16928046

#SBER Bank of #Russia was at least a giant on paper before the war began.
The downfall of this bank alone can bring down the Russian Economy.
Russia, irrespective of whatever comes out of the war, will suffer immensely.
But, such a nation, with precious resources, be closed down?

At least $300 bio plus reserves of Russia are frozen/impounded by foreign financial firms and government authorities due to sanctions.
What will be the consequences of this for other economies such as GCC Sheikdoms and Chinese that invest big time in overseas sovereign paper,etc?

For e.g. KSA earns around $1 Billion roughly every day from the export of oil.
A lot of that money is invested in overseas financial markets.
Other sovereign wealth funds in the GCC also invest petrodollars in large amounts across the world.
This impounding of reserves is a novel

investopedia.com/articles/inves….

MAJOR FOREIGN HOLDERS OF TREASURY SECURITIES (in billions of dollars)
HOLDINGS AT END OF PERIOD
DEC 2021.
ticdata.treasury.gov/Publish/mfh.txt

khaleejtimes.com/business/four-…

The next big topic in risk mgmt will be to monitor #sanctions risk and which country is vulnerable because of that.
Having lots of forex reserves is both a positive and a negative economic statistic, after the developments we have seen in Global Banking in the #RussiaUkraineWar

I am sure International Banking and Financial Law Experts will debate the issue of impounding state forex reserves & physical overseas assets, and other belongings which are owned by pvt individuals who belong to an aggressor nation that has been sanctioned or blacklisted.

EFT Electronic Funds Transfer Market, and other Payment Systems, which facilitate global transactions settlement, requires more regulation.
With Crypto Financial Assets, it becomes easier for #fincrime experts to bypass regular channels to obfuscate both regulation and compliance