Yudaeva: the situation in the Russian banking sector managed to maintain a stable

Yudaeva: the situation in the Russian banking sector managed to maintain a stable


Despite the fact that sometimes the Central Bank revokes the licenses of several banks a week, the situation in the sector stable, says the first Deputy Chairman of the CBR Ksenia Yudaeva.

MOSCOW, Nov 27. The situation in the Russian banking sector managed to keep stable despite the external negative pressure, said first Deputy Chairman of the CBR Ksenia Yudaeva.

“In the banking sector, despite serious external changes, managed to keep the situation stable, despite the revocation of four licences in the week that we are now occasionally observed. In the banking sector, we are seeing the growth of bad debts, the growth of reserves, so the decline in profits… but the downside is that these bad debts are covered by reserves. The banking sector, may be profitable but sustainable,” said Yudaeva, speaking to students at the Financial University.

“Helped, of course, the government’s program to recapitalize banks — here we must pay tribute that the government has quickly allocated money and reacted ahead of the curve, not lag, as is often the case. The current problem is treated, and the situation looks quite stable,” she said.

However, the head of the largest Russian Bank Herman Gref considers differently: in his view, in Russia now there is a large-scale banking crisis. As noted Gref, the majority of Russian banks currently do not earn profit, they have to allocate huge funds for the establishment of reserves. Moreover, according to the banker, the additional load Bank market adds to the fed’s policy for the cleaning sector from unfair players.

Earlier, first Deputy Chairman of Bank of Russia Alexey Simanovsky said that by the end of 2015, the profit of Russian banks is expected at more than 200 billion rubles. In January-October it amounted to 192 billion.