Financial Stability Review: companies and banks stay resilient
Profit in the real sector edged down amid a slowdown in economic growth and still high interest rates. Nevertheless, companies maintain a sufficient safety cushion. The situation in the banking sector is stable as well, and therefore, banks are able to lend to the economy and support borrowers if they need loan restructuring.
Households’ debt burden decreased as a result of a rise in their incomes and lower demand for credit. Concurrently, the proportion of non-performing loans in the retail segment was up, primarily because banks had been actively issuing loans to risky borrowers during the period of overheating in the credit market. However, prompt measures taken to limit households’ debt burden notably reduced the accumulation of risks.
The Bank of Russia will continue to monitor the resilience of the financial system and respond to arising challenges.
For more details, see the English summary or the full text of the Financial Stability Review (the full English version will be available later).