10% of Russian Banks to Get Licenses Annulled

UrBC, Moscow, February 28, 2017. Russia’s Central Bank will keep working on the national banking sector’s financial recovery and some 10% of banks and other lending institutions are likely to get their licenses annulled, banki.ru refer to the Analytical Credit Rating Agency’s report on the Russian banking sector in 2017-2020 as stating.

Under the Bank of Russia’s Head Elvira Nabiullina, who assumed office in the summer of 2013, the number of Russian banks has dropped by nearly a third in the last three years. There are around some 600 banks operating in the country at the moment.

Nabiullina announced in mid-February that the financial recovery will take a few more years to complete.

According to the agency’s analysts, the Central Bank’s ever-increasing macroprudential regulation will produce a less laissez-faire operating environment for the Russian banks. For one, their number will keep going down, with less bona fide and financially stable banks losing their licenses.

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