In the next year, 10% of Russian banks may lose their licenses, according to a forecast by the Expert RA rating agency.
Analysts state that the Bank of Russia has been withdrawing bank licenses at a slower rate recently. However, at least 38 lending organizations are at risk this year and 9.5% banks are experiencing hardships on the verge of a default.
According to the Central Bank, at the beginning of the year 442 banks operated in Russia, RBC reports. Expert RA analyzed the financial standing of 402 banks. The Central Bank has already taken away licenses from four since January.
Experts note that the banks at risk include those with excessive liquidity cushions or without stable funding sources. Other difficult cases include banks with low operating efficiency that is, when revenue does not provide for steady covering of expenses.