Cbank: Russian banks can resist serious shocks if crisis worsens

MOSCOW, Jun 6 (PRIME) -- The Russian banking sector can resist serious economic shocks if the crisis aggravates, the central bank said Monday providing results of stress tests.

“The banking sector is capable of withstanding serious shocks if crisis effects intensify, with measures of government support,” the regulator said in a report.

The regulator based its stress tests on oil price reduction to U.S. $25 per barrel and gross domestic product (GDP) decline of 2.4%.

The stress tests showed that with these parameters personal deposits with banks can grow by 6.3% a year in real terms, while the banking sector may have a 300 billion ruble net loss, and capital adequacy can fall to 6.8% from 8.5%.

The banking sector will still have “a significant capital buffer,” but some banks may face problems, the regulator said. The tests revealed that 63 banks can face a 200 billion ruble capital deficit, and 12 banks can have a 200 billion ruble liquidity deficit.

(66.8529 rubles – U.S. $1)

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