Pessimistic forecast: About 100 banks may be closed in Russia


September 23, Fineko/abc.az. About 100 banks may be closed in Russia over the next three years.

One third of them will voluntarily leave the market without the decision of the Central Bank of Russia on the withdrawal of their licenses.

ABC.AZ reports that Mikhail Sukhov, the head of the Analytical Credit Rating Agency (ACRA) and ex-deputy chair of the Central Bank of Russia, told Izvestia newspaper.

"Most banks are losing profitability, and the coronavirus crisis and lower interest rates have stimulated this trend," Sukhov said.

He added that shareholders understand that maintaining a loss-making bank is a hopeless task, and it is easier to refuse from the license. And 10 or more organizations will prefer merger. Others will cancel their licenses.