BankingBanking Risk ManagementRussian Banking Sector Stable, But Some Risks Growing

Russian Banking Sector Stable, But Some Risks Growing

Fitch Ratings says in a new report that its outlook for the Russian banking sector is stable. This reflects the still reasonably benign operating environment, the system’s generally satisfactory performance and stable asset quality, and limited refinancing risks given the sector’s predominantly deposit funding.

At the same time, Fitch comments that some risks are growing in the system. The credit ratings agency (CRA) is concerned that rapid retail loan growth could lead to asset quality problems, in particular at banks with less experience in this segment. In addition, higher funding costs, due to greater competition for deposits, coupled with a normalisation of provision expenses, are likely to dampen profitability, and capital and liquidity levels have moderated as a result of overall credit growth.

Related Articles

Trade around the world: Mitigating rising supply chain risks in evolving economies

Banking Risk Management Trade around the world: Mitigating rising supply chain risks in evolving economies

1m Peter Cunningham and Natasha Condon
Addressing the challenges of bank treasury

Banking Risk Management Addressing the challenges of bank treasury

2m Austin Clark
Mixed response to JP Morgan’s digital currency launch

Banking Risk Management Mixed response to JP Morgan’s digital currency launch

2m Austin Clark
Swift extends KYC Registry to corporates

Banking Risk Management Swift extends KYC Registry to corporates

2m Austin Clark
Outsourcing and the banking sector: Problems and prospects

Banking Risk Management Outsourcing and the banking sector: Problems and prospects

2m Nash Riggins
Credit risk management principles, tools and techniques

Banking Risk Management Credit risk management principles, tools and techniques

2m Austin Clark
Reputational risk management: a bank's view

Banking Risk Management Reputational risk management: a bank's view

2m Rüdiger Senft
Control over Cash

Banking Risk Management Control over Cash

3m The Global Treasurer