Russian Central Bank conducts stress testing on banks, finds sector to be stable in conservative scenario

SOCHI. Sept 28 (Interfax) - The results of the stress testing of banks showed the stability of the sector in the context of a conservative scenario, Deputy CBR Chairman Olga Polyakova told reporters.

"We have just discussed the results of the stress testing at the Financial Stability Committee. We conducted it using both the bottom-up method and the top-down method. In fact, the results are quite good. Our banking sector can withstand a conservative scenario," Polyakova said on the sidelines of the Association of Russian Banks' International Banking Forum in Sochi.

"There are several players who will experience difficulties with capital adequacy," the deputy chairman said. Meanwhile, she emphasized these are difficulties that could affect "a very small number of banks."

The Central Bank is conducting stress testing of banks from the top-30, she said

"We have specific tools that we actively use and are working on with banks; these are plans for restoring financial stability. They also contain elements of stress testing that are quite serious. There, banks have an action plan to restore their own financial stability. Systemically important banks are now undergoing the procedure and coordinating these plans with us," Polyakova said.