Elvira Nabiullina, head of the Central Bank of Russia
Elvira Nabiullina, head of the Central Bank of Russia, stated that the capital reserves and generated profits of the Russian banking sector are sufficient to absorb potential losses from asset revaluation due to a decline in the stock market.
Consensus
- The Central Bank of Russia's banking sector has enough capital to absorb potential losses from security revaluation.
- Banks have sufficient profit to absorb these losses.
- There are no risks to the stability of the Russian banking sector according to the Central Bank.
- Negative securities revaluation is occurring, but banks manage such risks effectively.
- The estimated capital reserve of the banking sector is around 10 trillion rubles.
- Market volatility has been observed, particularly in July, with the Moscow Exchange index falling below 1900 points.
Points of divergence
- There is no need to react to risks associated with financial stability; the Central Bank does not see such risks at present. — kommersant
- Net profit of the banking sector in June increased by 3.3% compared to May, reaching 374 billion rubles, while main profits decreased by 16% due to higher provisions for reserves. — vedomosti
- Provisions for legal entities rose by 36%, and recognized losses increased more than threefold, linked to investments in non-core businesses. — vedomosti
Coverage (3 sources)
- Central Bank believes banks have sufficient capital to absorb potential losses from asset revaluation — Интерфакс
- Central Bank sees no risks for the Russian stock market — Коммерсантъ
- Naibiulina states stability of the banking sector — Ведомости