The Central Bank conducted a stress test of the domestic banking sector, which showed good results, said Deputy Chairman of the Central Bank of Russia Olga Polyakova on the sidelines of the XX International Banking Forum.
“We just literally discussed the results of stress testing at the finance committee. We carried out both the bottom-up and top-down methods. The results are quite good. Our banking sector can withstand a conservative scenario,” she said (quote according to TASS).
At the same time, the test identified several banks that may face difficulties with capital adequacy, Polyakova added.
Last week the Central Bank reportedthat domestic banks earned a record 2.4 trillion rubles. net profit for the first eight months of 2023 – this corresponds to the indicators for the entire 2021. In August, credit institutions received a profit of 353 billion rubles, which is 8% higher than the July result (327 billion rubles). According to the regulator, income from foreign currency revaluation continued to remain a significant factor in profit growth against the backdrop of a weakening ruble exchange rate.
The number of profitable banks based on the results of eight months was 276 with a share of 99% in sector assets. Compared to July, in August the number of such banks remained at approximately the same level – 263 versus 265 organizations in July. Last year, the banking sector earned only 200 billion rubles. – this was the worst financial result in seven years.