Russia’s banking apocalypse

Russia may face a large-scale closure of banks with 100 banks likely to terminate their business within the next three years, Mikhail Sukhov, CEO at ACRA (Analytical Credit Rating Agency), says, noting that a third of the said banks will close down all by themselves and the Bank of Russia will not have to cancel their operating licenses, as over the recent years a civilized way of leaving the banking business has established itself.


According to Sukhov, the closure of the banks will be due to their low profitability, and the crisis triggered by the COVID pandemic will only exacerbate the current trend. Investors come to realize a lossmaking bank has no prospects, hence they would prefer to give up their banking license.

The Bank of Russia, he added, does not get involved in the process. Some banks will merge with the larger institutions while smaller ones will have their licenses terminated, the expert said. As Invest Foresight believes, the banks which offer the highest interest rates on deposits are the least reliable.

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