Head of Central Bank of Russia: Russian banks are at the edge of bankruptcy

bakruptcy

The head of the Central Bank Elvira Nabiullina said that some Russian credit institutions falsify their reports to the Central Bank, and are in a pre-bankruptcy state.

According to Nabiullina, the Central Bank will continue to actively revoke banking licenses during the next 2 to 3 years.

“We have already got rid of a few banks whose business model was built on conducting doubtful operations, but there are still banks that falsify the reports they provide to the Central Bank, and their real condition is close to bankruptcy,” Nabiullina said.

According to her, the Central Bank does not have a clear estimate on the number of banks that should eventually remain on the market.

After Nabiullina headed the Central Bank of Russia, the regulator began to massively revoke licenses from commercial banks as part of a reorganization of the banking sector. Among the organizations that lost their licenses, there were several institutions from the Russian Top-100. In particular, the license was revoke from one of the country’s largest credit institutions Master Bank.

Source: news.rambler.ru