UPDATE: Nabiullina: Russian banks to attain record profit 2021

(Adds details in paragraph 4)

SOCHI, Sep 17 (PRIME) -- Russian banks will attain a record net profit in 2021 due to continuing expansion of business and low reserve spending, the central bank’s Chairwoman Elvira Nabiullina said at a forum on Friday.

"Banks have not only escaped large losses or a significant deterioration of the quality of loan portfolios but have retained profit. Banks will get a record profit this year due to continued expansion of the business and a low spending on reserves," Nabiullina said.

The central bank is concerned with a fast increase in consumer lending from the point of view of financial and social stability, Nabiullina said. She added that the central bank raised macroprudential surcharges earlier and was ready to raise them more.

The authority is ready to initiate changes aimed at a stricter behavioral oversight of banks because of the spread of malpractices. "We can apply only the tools that we have under the law, the extreme measures (against malpractices) are not envisaged. But we are ready to initiate legal changes or change the severity of measures," Nabiullina said, adding that the central bank would punish severely for attempts to bypass the law.

The central bank is ready to introduce a more flexible, risk sensitive approach to bank regulation, she also said.

Nabiullina said that banks must become more involved in projects favoring a long-term growth of economy.

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