Russian Banks Have Discussed Seeking Bailouts Within Next Year

The senior executives in some of Russia’s largest banks have specifically discussed the search for a rescue financed by the state if the bad level of credit in their books continued to deteriorate next year.

According to the existing and former officials and documents reviewed by Bloomberg News, at least three lenders defined by the Russian Bank systemically important thought that they may need to be re -capitalized within the next 12 months.

The banks discussed how to increase the likelihood of recovery with the Central Bank if necessary. According to people and documents, the scenario is caused by the fact that the evaluation of the quality of credit books is much worse than official data.

People who were given anonymity to reveal non -public information, said that any rescue demand depends on an ongoing increase in the volume of bad loans during the next year. Nevertheless, they said that the debates became more urgent in the banking industry.

The banking system on paper is relatively good health and is profitable even in the so -called loans made to companies and household peoples close to the Central Bank’s basic interest rate. Officially, bad debt levels remain well below those recorded in past financial exercises and are neutralized by Russian authorities.

However, the Central Bank advised lenders to focus on the restructuring of the loan rather than recognizing the full scope of sour loans.

The Russian Bank did not respond to the request for comments sent by E -mail.

The Central Bank Governor Elvira Nabiullina, Russia’s banking system is “well -capitalized ve and has 8 trillion ruble capital reserves, saying that a systemic crisis in a financial forum in St. Petersburg on 2 July. Orum As the body that controls the banks, I say with full responsibility that these concerns are absolutely unfounded, ”he said.

The Central Bank said that it could release what is known as a macoprudensitial capital buffer and allow banks to absorb losses and work temporarily with lower capital rates. This step can alleviate some pressure on the system unless the volume of losses is designed to suck.

Officially, the share of bad quality loans to corporate borrowers is 4% as of April 1, the ratio of unsecured consumer debt is 90 days or more.

Nevertheless, the best bankers began to increase the alarm for expectations for next year.

Herman Gref, CEO of Sberbank, the state -of -the -Russian state, said that the expectations of the next year at the annual shareholder meeting last year, the loan portfolio quality, it is clear that this will not be easy because it worsened with companies that need to restructure their debts. “Hopefully, as always, we can find common plans that will go through these difficult times,” he added.

Vedomosti newspaper, Russia’s first major lending VTB, VTB, the share of individuals from individuals from individuals in the retail portfolio reached 5% in May, and Vedomosti news newspaper’s first vice president Dmitriy Pianov reported to July 1.

This indicator has increased by 1.2 percent since the beginning of the year. Pianov said that the share of bad loans could reach 6-7% by 6-7% by 2026, but this was below the 8-10% summit in 2014-16.

Customers are worried about high interest rates and the share of bad loans is growing, but for now, banks restructure them and want to be defined by discussing internal issues, according to the senior executives in the systemicly important systemic loans.

Although one of the people is very few signs of a crisis so far, too much data that can be solved with fund injections have been classified and full painting may not appear.

In the past, Russia has used rescue and other mechanisms to re -capitalize failed banks. In 2017, the Central Bank spent at least 1 trillion rubles to save three major private banks, Otkritie, Promsvyazbank and B & n Bank said it was necessary to save the financial system.

In 2017, the Central Bank founded the Banking Consolidation Fund to inject capital to the lenders to bend under pressure from bad loans and to rehabilitate them.

This article was created from an automatic news agency feeding without changing the text.