Increase in profit tax will take about 200 billion rubles from the banking system - Governor of Central Bank

MOSCOW. June 7 (Interfax) - Increasing the profit tax rate from 20% to 25% will lead to the withdrawal of about 200 billion rubles from the banking system, and while this will not affect its stability, it could lead to a possible reduction in lending growth potential, Central Bank Governor Elvira Nabiullina said on Friday during a press conference.

"We have previously assessed how an increase in the profit tax could affect banks. In our opinion, this tax will cost about 200 billion rubles. This will not affect the financial stability of banks in any way; they have capital reserves," the head of the Central Bank said.

According to Nabiullina, banks have a fairly large capital reserve, but it is not uniform. "Some banks may not feel this, but for some banks, this [an increase in profit tax] may reduce the potential for increasing lending," Nabiullina said.

"This is not about reducing lending potential, but the fact that the potential for lending growth will grow a little less in conditions where the profit tax is higher," Alexey Zabotkin, deputy chairman of the Central Bank said.