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Russian bank CEO expects about 10% of Russian banks to lose licenses in 2016

The official also stressed the necessity of reforms in Russia's public administration in order to stop the crisis
Sberbank CEO German Gref  Stoyan Vasev/TASS
Sberbank CEO German Gref
© Stoyan Vasev/TASS

MOSCOW, December 9. /TASS/. About 10% of Russian banks will lose licenses in 2016, Chief Executive Officer of Russia’s Sberbank German Gref said on Wednesday.

"About 10% of banks will lose licenses next year. The capital adequacy is at the low level - 13%. The banking system shall remain in the zone of focused attention," Gref said.

The Bank of Russia recalled licenses from more than 200 licenses in 2.5 years, including over 80 licenses in 2015 alone. Less than 700 banks are currently working in the banking system of Russia.

Sberbank CEO forecasts economic recession in Russia in 2016

German Gref also said he forecasts economic recession in Russia in 2016.

"In 2016, the economy will be in a recession," he noted. "If there is not a new turn in terms of the reforms, the economy will deteriorate." 

"What do we need to help the economy? The crisis requires systemic changes in all industries. Every day when we postpone reforms prolongs the crisis. This is reform of public administration," Gref said.

Russian Central Bank rates could reach pre-crisis level in 2016

According to the official, the rates of the Russian Central Bank in 2016 will continue to decline and could reach pre-crisis level.

"The Central Bank key rate will continue to decline - could be lower than 10%, and the rates could reach pre-crisis level," he said.

Gref also noted that the banking sector is currently facing excess of liquidity.