CBR: 29 Russian banks increase capital by 180 bln rubles in 2022
MOSCOW. Feb 2 (Interfax) - Russian banks increased charter capital by a total of 180 billion rubles last year, primarily with new share issues and other investments in capital, the Central Bank of Russia (CBR) told Interfax.
"Overall across the sector, charter capital grew by almost 180 billion rubles, half of which [92 billion rubles] in December, when the main recapitalizations took place," the CBR said.
Twenty-nine banks were recapitalized in 2022, primarily through new share issues, the CBR said.
"We believe that there is no need for systemic recapitalization, but such a need might arise at certain banks," the CBR said.
Based on stress tests conducted by the CBR last year, the overall amount of required recapitalization for the sector was estimated at up to 700 billion rubles to the end of 2023. The scenario assumed continued sanctions pressure, the deterioration of the credit quality of borrowers, as well as stagflation in the global economy.
However, the need to increase capital could be spread out over time or decrease, as banks are taking active steps to bolster capital, working with their owners on recapitalization, as well as reducing the level of risk that has risen in the crisis.