Sberbank CEO: Russia faces toughest banking crisis

MOSCOW, Dec 9 (PRIME) -- The banking system is still in a toughest crisis, and even though it has escaped the zone of big risk, it should still be under close attention, German Gref, CEO of Russia’s top bank Sberbank, told the Federation Council on Wednesday.

“The banking system has left the zone of a very big risk,” but is still should be under supervision, he told parliament’s upper house. When asked if the situation may be called a crisis, he said that this is a question of terms, but he thinks that “it is the most serious banking crisis.”

In these harsh times for Russia, banks have sustained the strongest blow. This is not the central bank’s fault, as it has been conducting right policy, but with the regulator alone cannot improve the situation, he said.

About 10% of Russian banks will lose their licenses in 2016, he added.

The central bank may also cut its key rate to below 10% in 2016. “The rates that the central bank sets will fall further. We see now excessive liquidity. Banks will start to come round next year, compete for good borrowers and rates will fall,” Gref said.

“I think we will see rates of below 10% next year, they even may fall to the pre-crisis level. It is possible given next year’s inflation of 7.5–8.5%, according to our estimations.”

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