7 Apr 2015 19:10

In extreme case of oil at $40 per barrel, Russian banks to need additional 500 bln rubles in capital - Simanovsky

MOSCOW. April 7 (Interfax) - In the extreme case of oil prices falling to $40 per barrel, Russian banks will need to be recapitalized by 500 billion rubles, as shown by the Central Bank's stress test, the bank's First Deputy Chairman Alexei Simanovsky told reporters on Tuesday.

"Somewhere around half a trillion," he said.

Simanovsky added that the Russian banking sector's capital adequacy ratio will be just over 10% in the extreme scenario, but as concerns certain credit organizations, "a fairly large number of banks might not meet the norms, which is why the question of additional capital will come up."

He also said that the extreme scenario foresees production falling rather significantly by 5% or more.