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Moody’s warned about the end of every tenth Bank in Russia

Moody's предупредило о закрытии каждого десятого банка в России

International rating Agency Moody’s expects about 10 percent of existing Russian banks will lose their licenses and can be liquidated in the next 12 months. On Wednesday, April 13, Rambler News Service reports with reference to the assistant Vice President of Moody’s Lev Dorf.

“Lenders will most likely incur significant losses as a result of liquidation of banks in Russia” — leads the Agency of his word.

In March, with a similar forecast was made by chief analyst of Sberbank Mikhail Matovnikov. In his view, the banking market will leave approximately 60-70 banks. The expert believes that the major withdrawals occur in the first half. According to him, the regulator is able to complete the sweep of the Russian banking system by 2017.

On 29 February the first Deputy Chairman of the Central Bank Alexey Simanovsky has informed that the main work on clearing the banking sector from unfair participants will be completed by 2017. In addition, he said that soon the banking license will be revoked not in tens and units.

Mass closure of Russian banks began in 2013. The Central Bank decided to improve the banking sector by removing from the market of credit organizations, whose activity is questionable. Most often licenses are revoked due to the violation of normative acts of Bank of Russia AML / CFT legislation and for conducting high-risk lending policy.

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