One fifth of restructured loans may become problematic for banks – CBR

One fifth of restructured loans may become problematic for banks – CBR

One fifth of restructured loans may become problematic for banks - CBR

MOSCOW (Reuters) – Up to 20% of loans restructured during the pandemic may become problematic, said Alexander Danilov, director of the Banking Supervision Department of the Central Bank of Russia, during an online conference at Fitch Ratings.

According to him, these data are based on the opinion of the banks, which the regulator got acquainted with.

Even if a third of the restructured loans become problematic, which is a conservative assumption, bank profits and capital reserves are more than enough to cover the losses, he said.

According to the Central Bank, the capital stock of the banking system is estimated at more than 7.2 trillion rubles.

This exceeds the sum of all restructured loans, Danilov said.

In total, banks have restructured debts of borrowers by 6 trillion rubles, which is about 10% of the banking system's loan portfolio.

Earlier, the Central Bank recommended that banks not delay the provision of problem debts.

According to Danilov, the regulator does not plan to extend the relief for banks that credit institutions received in the spring of 2020.

“So far, there is no need for additional indulgences and support measures. This will all be situational, if there are grounds for all this. So far, there is no such thing,” he said.

(Tatiana Voronova. Edited by Anastasia Lyrchikova)

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