Source link : https://london-news.net/growing-alarm-over-potential-systemic-banking-crisis-in-russia-state-economists-warn/
A recent report from a state-backed economic think tank indicates that the likelihood of a systemic banking crisis in Russia is increasing.
Analysts from the Center for Macroeconomic Analysis and Short-Term Forecasting (CMASF) caution that, although an outright crisis has not yet occurred, numerous warning signs suggest a significant possibility of one developing.
In their latest assessment, CMASF characterizes the current economic environment as a “resonance” of negative signals, including an uptick in non-performing loans, early signs of depositor withdrawals, and increasing pressures on both businesses and consumers due to elevated interest rates.
The organization is now meticulously monitoring not only warning signs of an impending crisis but also indicators that any future crisis might be prolonged.
CMASF outlines that a systemic banking crisis would entail meeting at least one of three criteria: non-performing loans surpassing 10% of total banking assets, substantial fund withdrawals by depositors, or bank recapitalizations exceeding 2% of the country’s GDP.
Though none of these criteria have yet been fulfilled, the report highlights a persistent rise in underlying risks.
The Central Bank of Russia, which has adopted a stringent monetary policy to address inflation, acknowledges the pressures high interest rates are exerting on the financial system.
Corporate borrowers are facing increasing difficulties in managing their debts, while households are rapidly…
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Publish date : 2025-05-29 13:20:00
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