The Russian banking system is in a state of unprecedented stress

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Российская банковская система находится в состоянии беспрецедентного стресса

As you know, last year the Russian banking system was left without 3 of the 5 biggest private financial institutions. For now, the banking segment is in the situation is extremely serious stress, experts say the HSE, which analyzed the statistical data of the Central Bank and the reporting documents of major credit organizations.

According to experts, Russia’s financial system is currently undergoing a situation of surplus liquidity. In the course of action with the Reserve Fund and national wealth Fund, meaning the money issue for replenishment of budgetary resources, the financial institution has received an excess of domestic currency and an alternative to borrowing in the Central Bank began the deployment of available funds.

According to the Ministry of Finance, during the last 3 years the amount of the emission to meet the needs of the Federal Treasury, reached ₽5.5 trillion and by the end of 2017, the excess liquidity in the banking segment was more than ₽2 trillion.

But the Deputy Director of “development Center” HSE Misikhina Tatyana believes that this is average data, and in fact, if a more detailed study of the situation, the trend is somewhat different. Misikhina noted that liquidity, namely the main volume is concentrated only in certain banks, while in parallel other financial institutions feel the lack of it, and some banks and all pretty tough.

When an excess of liquidity, banks generally provide so-called discounts in the opt, and if there’s too much money, the interest rates on corporate deposits is usually lower than on deposits of individuals. This trend was observed in the period 2010-2011, when the difference reached 2 percentage points.

Now the situation is somewhat different: corporate deposits retail more expensive. According to Misikhina, this points to a very disturbing level of imbalance within the banking segment. Money in plenty, but they are dispersed unevenly. Currently, the market trend of mistrust. This is evidenced by the fact that banks have ceased to borrow from each other, and some financial institutions shortfall is permanent and significant.

According to calculations by Higher school of Economics, the index of the imbalance in the Russian banking sector only for 1 year increased seven times, and is currently unprecedented in the history value.

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