No systemic risks in Russian banking sector, has margin of safety, potential for lending growth - Nabiullina
MOSCOW. March 28 - The Russian banking sector does not have systemic risks, it has a margin of safety and the potential for a growth in lending, Russian Central Bank head Elvira Nabiullina believes.
"There are no systemic risks in the banking sector, there is a margin of safety and potential for a growth in lending," Nabiullina said, speaking at an Association of Russian Banks conference.
She said that signs of a revival of demand are currently being observed.
"It is now possible to talk about the beginning of a new economic cycle. The slump in the economy is at an end, some sectors are outperforming. Real wages have started to grow and there are signs that demand is picking up," Nabiullina said.
She said that crucially, the banking system has generally recovered following the shock of 2014-2015, as evidenced by data for profits, profitability and capital buffers. "Banks have the opportunity to develop their business and increase lending," she said, adding that capital adequacy in the banking sector was at a comfortable level, just over 13%, and way above the statutory minimum of 8%.