Three Russian banks that are on the list of systemically important banks have started discussing the possibility of applying to the Central Bank for financial assistance if the quality of their loan portfolios continues to deteriorate.
Already now the quality of loan portfolios of some large Russian banks is worse than official reports show, Bloomberg writes with reference to former and current Russian financiers, as well as on the basis of documents studied.
The amount of aid the banks may need depends on the growth of bad loans in their portfolios in the coming year, the publication’s sources said. They noted that discussions on this topic are becoming more and more topical in the banking industry.
According to official data, Bloomberg writes, the Russian banking system is in relatively good shape and profits remain stable even as the volume of bad loans grows at a key rate of nearly 20 per cent.
The head of the Russian Central Bank Elvira Nabiullina said in June that fears of a banking crisis in Russia have no grounds and called the processes taking place in the Russian economy “coming out of overheating”.