ACRA: in Russia there may be 50 fewer banks by 2024

General Director of the Analytical Credit Rating Agency (ACRA) Mikhail Sukhov said that after two and a half years the number of banks in Russia could decrease from 329 to 280. This could happen due to the consolidation of the public sector and the liquidation of banks by non-residents.

“In addition to the withdrawal of foreigners and consolidation, some small banks may not be able to withstand competition and leave the market in a more familiar way for Russia,” the head of ACRA said in an interview with RIA Novosti.

Among the reasons for the reduction in the number of banks, Mr. Sukhov listed the following:

• consolidation of the banking sector due to unprofitability;
• voluntary liquidation of a part of credit institutions of non-residents;
• sale of non-resident banks, which will result in their mergers;
• the closure of some small banks due to the fact that they could not cope with the competition.

In May, it became known about the merger of state-owned banks VTB and Otkritie, which will take place “not earlier than the autumn of 2022.” Also in May, the Central Bank announced that the accession of the Minbank to Promsvyazbank would be “no later than May 2023.”

This year, 5 credit institutions have passed their licenses, in 2021 – 32. Basically, banks leave by decision of the Central Bank, and not voluntarily.

Read more about the situation of the reduction of the banking sector in the Russian Federation in the material “Kommersant” “Banks are stuck in the system”.

Polina Sobakina