EXPERTS PREDICT 46 RUSSIAN BANKS TO DEFAULT

HomeNewsEXPERTS PREDICT 46 RUSSIAN BANKS TO DEFAULT

Before April 2020, 46 Russian banks may lose their licenses, a group of experts from a number of Russian rating agencies concluded. The pessimistic forecast will not affect only the top-20 credit institutions. According to the estimates, a default threatens 10.9% of the existing banks. The main reasons for revoking banking licenses in the next year, according to the study, may be violation of the requirements of anti-laundering legislation, understatement of accepted risks and withdrawal of liquid assets to the detriment of creditors' interests.

First, all small banks outside the top-100 came at risk. Among the top-100 financial institutions, not more than a dozen might lose their license. The report highlights that the top-20 banks do not have to fear for their condition.

As of the early April, there were 430 banks in Russia, but in the study the experts analysed only 422 credit institutions. This is due to the fact that the other banks do not publish their financial reports. Currently, banks that fell under Western sanctions have the right to do so.