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. Last Updated: 07/27/2016

Banking Stability

Economist and Kremlin analyst Mikhail Delyagin dispels fears on Russia's looming banking crisis.

What can you say about the growing number of banks that are losing their licenses?

Many of the banks now bankrupt were not directly involved in large-scale operations. Outside of Moscow, the largest concentration of banks, if I'm not mistaken, is in Dagestan, which has 82. That's 3.8 percent of Russia's financial institutions, but the assets of these banks account for less than 1 percent of the total.

The collapse of even a great number of small banks can be fully made up for by the success of one large bank. ...

Another problem facing Russia is the procedure for liquidating banks, which is quite a drawn-out procedure. As of July 1, a total of 448 credit organizations -- 17 percent of Russia's registered banks -- that had already had their licenses withdrawn still existed on paper.

What is your prognosis [for the banking sphere]?

I do not expect a new crisis. ... While big banks are encountering serious difficulties, most banks in the regions, which play an important role there, are laying low. Yet in both cases, there are signs of improvement.

Regarding regional banks, what makes you optimistic?

Many of them want to become daughter structures or filials of Moscow banks. Not so long ago, these banks had been willing to pair with any buyer who was ready to take over their debts. Now, more and more they're beginning to choose. And he who picks the sausage will not die of hunger.