Financial Results of the Banking Sector in Q1 2021
Monitoring of Russia's Economic Outlook. Trends and Challenges of Socio-Economic Development. Moscow. IEP. 2021. No. 9, pp. 14-16
3 Pages Posted: 20 May 2021
Date Written: May 18, 2021
In Q1 2021, banks formed reserves in advance in the required amount. Therefore, there was no sharp decline in profits owing to the gradual abolition of easing in terms of the formation of reserves for large corporate loans. Nevertheless, compared to 2020, we should expect a slight deterioration in the bank profitability. The reason is a possible reduction in the credit supply amidst growing credit risks and a decrease in income from currency revaluation due to the strengthening of the ruble.
Keywords: Russian economy, banking sector, corporate lending
JEL Classification: G21, G24, G28
Suggested Citation: Suggested Citation