The Central Bank has promised to continue cleanup of Russian banking sector

The Bank of Russia will continue displays from the market of banks with “exaggerated” capital and bad assets. This was stated by the head of the regulator Elvira Nabiullina at the conference “United Russia”, reports TASS.

According to her, some lending organizations are faced with problems that have accumulated over decades — and bad assets, “inflated” capital business financing of their owners, who later “served”, causing problems in such banks. These problems are short term, and in this regard, the Central Bank will continue the policy of improvement of the Russian banking sector, said Nabiullina.

“Leave them on the market is impossible, because the problems will only increase. If such a Bank with the “holes” with incorrect credit policy of financing unprofitable projects owners will continue to attract funds of investors and business, respectively, in the end suffer more investors and businesses, so we need these banks in time to withdraw from the market”, — said Nabiullina.

She noted that the supervision of the Central Bank has already shown its effectiveness — the number of banks that carried out suspicious transactions has decreased significantly. However, this does not mean that the regulator will soften its policy to supervise banks, it will continue to monitor the situation and withdraw from the market are credit institutions, said Governor of the Bank of Russia.

In General, said Elvira, now the banks are stable and continue to lend to the economy. “Of course, they went through a very difficult period last year in the first half of banks have long periods of losses, this year we see that the profit is 7 times higher than the same period last year,” she said, adding that for 8 months of the current year profit of the banking sector amounted to 532 billion rubles.

In addition, according to Nabiullina, the regulator said the cessation of growth of bad debts, that is, those loans that are not serviced. And capital the banking system is enough, concluded the head of the Central Bank.