Gref: the loss of the Russian banks is evidence of a systemic banking crisis

Gref: the loss of the Russian banks is evidence of a systemic banking crisis


Over the last two years the cumulative loss of investment in the banking sector amounted to more than 3% of GDP, said the head of Sberbank German Gref.

MOSCOW, 25 Dec. Systemic banking crisis in Russia is confirmed by the losses suffered by the credit institution, especially in 2015, said the head of Sberbank German Gref.

Gref said that there is a formal classification by the International monetary Fund (IMF), according to which, in particular, on systemic banking crisis is evidenced by the losses of the banking sector by more than 2% of GDP.

“If we take 2014 and 2015, we have accumulated losses of investments in the banking sector amounted to more than 3% of GDP. This means that the international procedure, of course, we can speak of a systemic banking crisis”, — said the head of Sberbank on the TV channel “Russia 24”.

The most complex for banks, he said, was 2015. “This year the crisis was very severe for the banking sector… In total last year total loss of the sector amounted to about 900 billion rubles, this year – about 1.5 trillion rubles. This, of course, a huge amount. Never have we seen such losses”, — said Gref.

Next year, according to the head of the savings Bank, will continue a difficult situation for banks, but factors such as increase in the key rate of the Central Bank and sanctions, will go by the wayside, and credit organizations will work on problem debts.