Ministry of Finance: banks do not need systemic additional capitalization

Today, Russian credit institutions are able to work without systemic additional capitalization, said Ivan Chebeskov, director of the financial policy department of the Russian Ministry of Finance.

“At this stage, we believe that the systemic additional capitalization (of the Russian banking sector— “b”) is not needed,” said Mr. Chebeskov on the sidelines of the International Banking Forum “Banks of Russia – XXI Century” (quoted from TASS).

In early September, the first deputy chairman of the Central Bank Dmitry Tulin also spokethat there is no need for systemic additional capitalization of the banking sector. However, according to him, the Central Bank can, if necessary, take targeted decisions on individual banks in the form of financial support from their shareholders. Assistant to the President of the Russian Federation Maxim Oreshkin also said that the banking system has now returned to profit, and therefore does not need additional capitalization.

The Association of Russian Banks (ARB) also made a proposal to the Central Bank to consider additional capitalization of the banking sector at the expense of the National Wealth Fund of Russia. Representatives of the sector then claimed that they considered the conclusion contained in the report of the Bank of Russia, which states that the banking system coped with the imposed sanctions and is able to restore financial stability on its own, to be overly optimistic.

Natalia Semenova