Articles by Olga Naydenova

Banks: Looking for More Fiscal Spending and Lower Interest Rates

  • 04 August 09
  • OTKRITIE Financial Corporation Ltd
In the current situation, prospects for an economic revival are largely tied to the banking sector’s capacity to finance a recovery. Risks associated with mounting bad loans push Russian banks push to move in the opposite direction. Since the onset of the crisis, most private banks reduced their corporate lending portfolios, while state banks had to compensate for this constriction of credit. However, reports suggest that in June even Sberbank and VTB were reducing their corporate portfolios.