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Russian banks may need extra aid if economy deteriorates — Central Bank official

At the same time, banks will face no problems, if the national economy develops in line with the Economy Ministry’s baseline scenario, the Central Bank official says

TULA, February 5. /TASS/. Russian banks may need additional financial support if the situation in the national economy deteriorates, Central Bank Deputy Chairman Mikhail Sukhov said on Thursday.

The Russian banking sector may be confronted with serious problems if developments in the domestic economy deviate from the baseline scenario prepared by the Economy Ministry, he said.

"Banks are operating absolutely adequately to the current economic conditions. Problems in the banking sector may arise only if economic parameters go far beyond the framework of the existing economic forecast," Sukhov said.

At the same time, banks will face no problems, if the national economy develops in line with the Economy Ministry’s baseline scenario, the Central Bank official said.

Russian banks’ recapitalization by 1 trillion rubles ($14 billion) through the Deposit Insurance Agency will boost the domestic banking sector’s capital by 13-15%, Finance Minister Anton Siluanov said in late December.

"The 1 trillion-ruble volume will help boost the banking system’s capital by 13-15%," the minister said.

This amount is required for the Russian banking system’s recapitalization to comply with capital adequacy ratios and increase lending by at least 1% a month, he said.