Gref: Russia’s banking system has left areas of great risk

Gref: Russia’s banking system has left areas of great risk


Russia’s banking sector suffered a crisis the first and most of all, said the head of Sberbank German Gref, adding, however, that an adequate policy of the Central Bank helped to avoid some serious problems now.

MOSCOW, 9 Dec. The Russian banking system is now experiencing a serious crisis; she’s gone from the zone of great risk, but must remain under close supervision, said the head of Sberbank German Gref.

“First, I would like to say that, of course, the banking sector suffered in the crisis first, and suffered most of all”, — Gref said at the Federation Council.

However, he believes that the policy of the Central Bank in a crisis situation was very adequate. “The currency crisis that occurred at the end of last year and was a shock to all, is, of course, not the fault of the Central Bank, is the addition of a number of circumstances. Time released (to float freely — ed.), the ruble saved this year the industry from a deep and protracted crisis. We see that those countries that have not made it on time, put in a very difficult macroeconomic situation,” — said Gref.

According to him, the crisis in all other sectors, except financial, is experienced much easier due to the fact that monetary authorities of the time took responsibility and accepted the decision.

“Avoided a major banking crisis in the medium term to achieve the inflation (Central Bank target of 4% in 2017 — ed.), banking, And insurance sector gradually cleared from unscrupulous organizations is correct, but one policy of the Central Bank in this part is not enough” — said the head of the largest Russian Bank. According to his calculations, the banking crisis has cost the Russian economy over the past two years to 1.8% of GDP.

Gref also noted that despite the recapitalization of banks through the OFZ mechanism, the capital adequacy of the banking system remains at a critically low level. “Today it is 13%, but it is not enough for these volatile times like today. So… the banking system must remain in the area of scrutiny. But she left the area very big risk,” he said.

“However, there is a dispute about whether to call this a banking crisis, can we say that we have passed the peak of the banking crisis. It is a question of terms. We have to agree on terms and definitions, then to say that these terms are applicable or not applicable to the current situation”, — said Gref.

“In my opinion, it is, of course, the banking crisis, major, which required the involvement of almost all resources of the state and administrative resources, legislation and resources, and a huge amount of financial resources”, — concluded the head of Sberbank.