Russian MinFin has not received requests for recapitalization from major banks
VLADIVOSTOK. Sept 3 (Interfax) - The Russian Finance Ministry has not received requests for recapitalization from major banks, Alexei Yakovlev, head of the ministry's Financial Policy Department, told journalists on the sidelines of the Eastern Economic Forum.
Bloomberg reported in July, citing sources, that three systemically important Russian banks were considering the possibility that they might need a capital injection within a year. Before that, in June, the agency also wrote about fears of a banking crisis in Russia owing to high rates.
"They [the banks] haven't asked us. This was fake news," Yakovlev said.
There is no reason to expect problems for large banks, but even if a stress scenario is realized, they will be able to cope on their own; there is no reason to consider government support in any form, Elvira Nabiullina, head of the Central Bank, said in July.
"I will say once again that these are rumors [problems with capital at large banks and their appeal for state support], which are not based on anything, not substantiated by anything. It seems to me that someone is deliberately escalating the situation. I have already explained why there is no reason to worry. I can also give figures. Because you need to look at the figures and the financial indicators. The banks are stable, they are making money, and they have capital reserves. All this allows them to feel quite confident," Nabiullina said.
"Even if we assume a hypothetical, I emphasize, hypothetical stress scenario, that some of the banks will run into capital standards. However, they have the ability to manage the situation without outside help. This includes a decrease in the growth rate of the loan portfolio. If there are no sources of capital, if a low-profit bank cannot increase capital from profits, then it will increase loans more slowly, or will not increase them, will increase others, because the capital reserve in the banking system as a whole exists. But some banks may grow more slowly," she said.
"This could also happen in other cases: sale, securitization of a credit portfolio in the market. These are, in principle, established, fairly standard procedures. We keep our finger on the pulse, but I see no reason to consider state support in one form or another," she said.
