NonPerformingLoans

RUSSIAN BANKS PRIVATELY DISCUSS BAILOUT AMID SURGE IN BAD LOANS – BLOOMBERG REPORT

Top executives at several of Russia’s largest banks have reportedly held internal talks about seeking government-funded bailouts if non-performing loans (NPLs) continue to rise, according to sources cited by Bloomberg.

At least three systemically important lenders, including Sberbank and VTB, have modeled recapitalization scenarios for the next year. Internal assessments suggest loan book deterioration is significantly worse than official figures show.

▶️ Key Concerns:
• Official data reports just 4% of corporate loans and 10.5% of unsecured consumer loans as non-performing.
• Insiders argue real figures are far higher, but regulatory restructuring is masking the issue.
• Distressed mortgage loans at Sberbank rose 90% in Q1, reaching a 2-year high.
• Unsecured NPLs surged 22.5% at Sberbank; VTB’s consumer bad loans jumped from 3.9% to 4.8%.

🔍 Policy Response:
Central Bank Governor Elvira Nabiullina maintains that the system remains “well capitalized,” citing 8 trillion rubles in reserves. However, the central bank may need to release its macroprudential buffer to help banks absorb rising losses.

🧠 Outlook:
Bank executives warn of “difficult times ahead” as corporate and consumer credit quality worsens. While no formal bailout requests have been filed, insiders suggest the entire sector is watching conditions closely.

#Russia #BankingCrisis #Sberbank #VTB #NonPerformingLoans

RUSSIAN BANKS QUIETLY WEIGH STATE SUPPORT AS BAD LOANS CLIMB – BLOOMBERG

Senior leaders at some of Russia’s biggest banks are reportedly having internal discussions about the possibility of government assistance if the spike in bad loans continues, according to sources cited by Bloomberg.

At least three major financial institutions, including Sberbank and VTB, have already drafted scenarios for recapitalization in the coming year. Insiders say the deterioration in loan portfolios is far worse than what’s being publicly reported.

▶️ Highlights:
• Official stats show 4% of corporate loans and 10.5% of unsecured consumer loans are classified as non-performing.
• Bank insiders believe the actual figures are significantly higher, with regulatory changes concealing the true extent.
• Sberbank’s distressed mortgages jumped 90% in Q1, hitting a two-year peak.
• Unsecured loan defaults at Sberbank spiked 22.5%, while VTB saw a rise from 3.9% to 4.8% in consumer bad debt.

🔍 Regulatory Reaction:
Central Bank chief Elvira Nabiullina insists the banking system is “well capitalized,” pointing to 8 trillion rubles in reserves. However, the central bank may have to tap into its macroprudential buffer to offset increasing loan losses.

🧠 What’s Next:
Top bankers caution that the sector faces challenging months ahead as credit quality weakens across the board. No official requests for government support have been made yet, but the entire industry is keeping a close watch.

#Russia #BankingCrisi #Sberbank #VTB #NonPerformingLoans