Translation. Region: Russian Federation –
Source: Central Bank of Russia
An important disclaimer is at the bottom of this article.
Real sector company profits have declined somewhat amid a slowing economy and persistently high interest rates, but businesses retain a buffer. The banking sector is also resilient. This will allow banks to continue to lend to the economy and support borrowers through restructurings.
The debt burden of individuals has decreased amid rising incomes and reduced demand for loans. At the same time, the share of problematic debt has increased, primarily due to banks actively lending to risky borrowers during the recent credit crunch. However, timely measures to limit household debt have significantly curbed the increase in risks.
The Bank of Russia will continue to monitor the stability of the financial system and respond to challenges.
Read more in the next issue Financial Stability Review.
Please note: This information is raw content obtained directly from the source. It represents an accurate account of the source's assertions and does not necessarily reflect the position of MIL-OSI or its clients.