MOSCOW, November 30. /TASS/. The real and financial sectors of the Russian economy will remain stable in the environment of increased rates in the mid-term, according to the Bank of Russia’s review on financial stability.

"Borrowing costs have increased on global markets, which creates concerns about possible risks to the financial stability of vulnerable sectors. In Russia, rising rates have already begun to lead to a gradual cooling of lending activity. The Bank of Russia expects that the real and financial sectors will remain stable in the environment of raised rates in the mid-term," the document notes.

According to the Bank of Russia, the stability of the real sector is facilitated by its relatively low debt (at the beginning of July 2023, the debt of non-financial companies in Russia amounted to 50.6% of GDP, the debt of citizens was 20.4% of GDP, public debt was16.1% of GDP, while in the G20 countries these figures were 98.5%, 62.6% and 92.2% of GDP, respectively).

Stability is also facilitated by a high level of interest margin (4.8% for the third quarter of 2023) and a significant capital buffer in the banking sector, which will ensure its resistance to the implementation of interest rate risk and possible external risks, the Central Bank points out.

However, according to the regulator, the vulnerabilities that were mentioned in previous issues of the review are still relevant: a high proportion of debt-ridden citizens, imbalances in the mortgage market.