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. Last Updated: 07/27/2016

Fear of Bank Closures

Vyacheslav Zakharov, vice president of the Russian Banking Association, said Friday that the decision of the Central Bank to raise the minimum capital requirement for banks could cut the number of Russian banks from 2,000 to 300, Interfax reported.

Zakharov said that under the new requirement, no new banks would be set up in the next 18 months because banks will not be able to come up with the required starting capital.

The Central Bank this week raised a minimum capital requirement for banks from 100 million rubles to 2 billion rubles as of March 1 in a move to stop unstable banks entering the market.