7 Apr 2020 14:48

Nabiullina warns banks against attempts to 'capitalize' on regulatory easing due to virus: this is meant to help borrowers

MOSCOW. April 7 (Interfax) - The Central Bank of Russia (CBR) is monitoring the interaction of banks with clients who have been hard hit by the coronavirus pandemic. If lenders are using the easing that has been offered to protect their profits rather than to support lending, the CBR will react, including via regulatory means, Central Bank Governor Elvira Nabiullina said.

"We are monitoring the situation with respect to interactions between banks and clients in this difficult period. We are working with banks so that they accommodate their clients in loan restructuring and not reduce lending. The Bank has imposed regulatory easing, the priority of which is to support people and companies and give them the opportunity to weather the period of restrictive measures more easily. If we see that banks do not share this position, we will react, including via regulation. We imposed regulatory easing not to support bank profits, but to support lending and soften the consequences of the pandemic for people and businesses. If banks take undue advantage of our support, we will be prepared to review our approaches," Nabiullina was quoted as saying by the CBR press service.