Cbank: Banks must not rely on retail lending for growth

MOSCOW, Jun 21 (PRIME) -- Lending to households must not be the only growth driver of the banking business, the central bank reported on Friday, quoting Chairwoman Elvira Nabiullina as saying.

“The central bank has already started to apply measures to cool this lending segment to avoid the situation of a dangerously big debt burden on the population,” the authority said.

A central bank campaign to purge the banking sector from the weaker players has almost been finished, she said. The share of the 60 weakest banks which lost the license in 2018 in the assets of the banking sector fell to less than 1%.

Nabiullina also said that the central bank carried out a stress test in 2018, which showed that the banking sector is stable at large. “In spite of a significant toughness of the given scenario, two out of three capital adequacy indicators remain above the threshold requirements in the banking sector at large, which means that the banking sector at large is stable,” the report said.

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