Large banks in Russia continue to lose foreign currency depositors

the Largest Russian banks continue to record the outflow of foreign currency deposits even after the peak of the crisis and the pandemic coronavirus infection COVID-19, follows from the reporting of credit institutions of July 1, 2020.

Outflow of $602,4 million of deposits in foreign currency in June has experienced seven of the 11 systemically important players evaluated at the request of the RBC analyst at BKF Bank Maxim Osadchy.

a problem was encountered, in particular, Raiffeisenbank, Alfa-Bank, UniCredit, ROSBANK.

For comparison, in March the outflow of the nine systemically important banks amounted to $3.8 billion, in April — $1.1 billion of the ten banks in may $505 million of seven credit institutions.

As explained by analysts, banks offer too low the profitability of savings and refuse to renew the deposits.

In total banking sector deposits from Russians in foreign currency (including money in current accounts) as at 1 July reached $89,56 billion for the month, an increase of $593 million, according to the Central Bank of the Russian Federation. Foreign currency savings of Russians in banks increased for the second month in a row after a long period of outflow. But growth is the increase in foreign currency funds on current and card accounts.

Recall also that, according to the CBR, the net profit of Russian banks last month amounted to 70 billion rubles. After the failure in may the financial result of the sector has improved and reached at the end of II quarter 102,56 billion. However, compared to the pre-crisis first quarter net profit of credit organizations fell by more than 5 times.

the quarterly profit Fall to such levels, the banking sector experienced in 2017 at the background of rehabilitation of large private banks. Then the third quarter was unprofitable for the sector (total loss of 95 billion roubles), and in the fourth quarter, the banks showed profit at a level slightly higher than in the quarantine quarter, to 115 billion rubles.

on July 13, the Chairman of the accounts chamber of the Russian Federation Alexey Kudrin has warned that Russian banks in the neare time may face lack of capital and necessity of additional capitalization. According to him, “nedonoshennyh the amount of reserves equal to the value of the excess capital in the banking sector”. “It’s not critical, but the risk is increasing. We must understand that after the easing of regulatory requirements will have to clear the area and give a real assessment of the risks that have a credit portfolio, and thus banks unable to meet capital shortfalls and will need a recapitalization of banks, or rehabilitation or liquidation”, — said the head of the controlling Agency.

however, he stated that since the beginning of this year, the quality of the loan portfolio of Russian banks has decreased, and this, says the head of the audit chamber, along with the decrease of profit and liquidity of banks is one of the risks for the Russian financial sector.

meanwhile, the Chairman of the Central Bank of Russia Elvira Nabiullina expects no serious problems with the capital of the Russian banks, as well as the transition of the system to liquidity shortage in the foreseeable future.

“the banks, Yes, decreased profits, but it is. It will be a source of capital. So, we did not see any problems that we have in the system lack of capital. Individual banks may have difficulty with which they cope. The same lack of liquidity. We do not see, first, in the foreseeable future that we will move to a liquidity shortage,” — said Nabiullina this week in the Federation Council.

however, she assured that the banking system of the Russian Federation in the past has gained sufficient strength to the crisis continue to evolve, providing support to their customers.

we also Add that the Russian economy in February—March 2020 was under the powerful impact of two negative factors — the rapid spread of the pandemic coronavirus infection COVID-19 and its deleterious effect on the global economy, as well as the collapse in oil prices. Against this background, the rouble significantly depreciated against the dollar and the Euro. Reacting to the situation, the government and the Bank of Russia adopted several packages of measures to support the economy and citizens.

may 11, Russian President Vladimir Putin announced the end of may 12, a single period of days off, entered March 30, in the fight against COVID-19.

on 2 June Prime Minister Mikhail Mishustin reported on the nationwide state plan for the recovery of the Russian economy in 2020-2021 years, noting in particular that the cost of the plan will amount to about 5 trillion roubles. June 19, Putin was sent a revised draft of the national plan.

July 2, Deputy Minister of Finance of the Russian Federation Vladimir Kolychev said that the total cost of the measures (the bailout package), aimed at combating the spread of coronavirus infection in Russia and mitigating economic impacts from restrictions imposed, estimated to be worth about 4 trillion rubles. According to him, the main focus of the budget measures were made on several fronts: strengthening health systems, supporting citizens and businesses, the balancing of regional budgets.

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