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Analyst: banking crisis — a boon for the financial system of the Russian Federation

Аналитик: банковский кризис — благо для финансовой системы РФ

The banking crisis in Russia will be a boon for the financial system and the economy as a whole. This opinion was expressed Director of the analytical Department of “Alpari” Alexander Razuvaev.

As the expert reminds, on Thursday, the head of Sberbank German Gref said at the St. Petersburg international economic forum that the end of the banking crisis in Russia is still far, and it continues. “However, he believes that the situation in the part of credit institutions is still better than last year. For example, this is evident from the figures Bank profits, which in 2016, according to various estimates could reach 600-700 billion rubles. However, in his estimation, required at least another couple of years to adapt to the current economic situation and prospects of its development,” the review says Razuvaev.

In his view, “the macroeconomic situation (in Russia — ed.) or a new reality, indeed, is far from ideal”. “The economy is still in negative territory, real personal income also in the negative zone. Credit risks are high. Stock markets far from historical highs. There is a crisis of confidence in the banking system. Accordingly, the fast is the concentration of capital in favor of a small number of associated with the government, the CBR or large industrial groups, financial firms,” says the analyst.

However, he said, “the banking crisis — for the benefit of the financial system and the economy as a whole.” “It needs to improve the market environment. In Russia still there is an excess of credit institutions — an echo of the 90s. Then the banks grew like mushrooms after rain. Hyperinflation has provided ultra-high interest margins. And the game against the ruble, automatically provided the Bank’s profit. The macroeconomic situation has changed, and the financial sector is inflated, as in the 90s. Plus the part of the banks serving the informal sector of the economy”, — the expert emphasizes.

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