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World Bank describes Russia’s banking sector as ‘relatively stable’

According to the World Bank, "the Russian banking sector is stabilizing"

MOSCOW, June 10. /TASS/. Russia’s banking sector has been relatively stable, the World Bank said in its Russia Economic Report.

"The Russian banking sector has been relatively stable, supported by modest economic growth and the proactive position of the regulator. The CBR [Central Bank of Russia - TASS] has been taking timely steps to address the risks of the accelerated consumer-lending growth, and it continued its sector clean-up by revoking the licenses of some smaller banks and focusing on the financial rehabilitation of large financial institutions," the report reads.

According to the World Bank, "the Russian banking sector is stabilizing as the modest economic growth supports lending growth, though dynamics vary from segment to segment, and credit risk and sector performance indicators remain stable."

"Corporate demand for new loans strengthened as credit to the corporate sector in Rubles grew by 11.4%, y/y, as of May 1, 2019 (Figure 16). Lending to households in Rubles continues to grow in double digits - at 24.0%, y/y, at the same time," the report says.

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