The Central Bank estimated the amount of additional capitalization of banks at 700 billion rubles in the event of “realization of shocks”

The Bank of Russia presented an assessment of the situation in the banking sector. According to the regulator, it remains stable, but some banks may need additional capitalization in case of a negative scenario. Its total size is estimated by the Central Bank at 0.7 trillion rubles.

After significant losses in the second quarter, already in the third quarter of this year, the banking sector began to make a profit again against the backdrop of lower volatility and recovery of interest margins. If sanctions pressure continues, the banking sector as a whole will remain stable, the Bank of Russia predicts.

“The capital adequacy of banks may decrease in 2023 by a total of 2.6 percentage points, but in general the banking sector will retain a significant capital reserve, as well as the potential for lending (about 40.7 trillion rubles in 2023)”, — says in the Financial Stability Review.

However, some banks in the event of realized shocks may require additional capitalization, the Central Bank notes. Its total volume is estimated at up to 0.7 trillion rubles. over the forecast horizon, while the need for capital increase can be distributed over time or decrease, the regulator predicts.

Against the backdrop of the complicated situation in the financial sector after the start of the military operation, the Bank of Russia took a number of measures. The regulator allowed until the end of the year to postpone the formation of reserves for possible losses on assets that were blocked due to sanctions. The Central Bank also introduced a relaxation in relation to the norm of structural liquidity.

However, in 2023, a number of relaxations will be canceled for Russian banks. In particular, the regulator plans to resume the monthly publication of the turnover sheet for bank accounts.

More details – in the publication “Kommersant” “Freeze won’t go away”.

Maria Fedotova