International rating Agency Moody’s improved the Outlook for the Russian banking system to stable from negative. This is stated in published on Monday the message of the organization.
“The slow recovery and stabilization of macroeconomic indicators in Russia will support the operating environment for Russian banks”, – are reported comment by Vice-President Moody’s Irakli Pipia.
The Agency, however, still forecasts a decline of Russia’s GDP in 2016, only 1 per cent with further growth of the Russian economy in 2017.
In addition, Moody’s expects growth in the proportion of bad loans in financial institutions up to 14-15% of the total loans in the next 12-18 months with 12% at the end of 2015.
Moody’s analysts noted overall improvement in the capitalization of the banking system through injections of government capital, and the Agency’s analysis suggests a moderate and controlled reduction of capitalization of the banking system during the forecast period.
“Indicators of funding and liquidity in the Russian banking system is improving: the average ratio of the volume of loans and deposits at the end of June 2016, decreased to 109% from 115% a year earlier, and banks continued to reduce their dependence on the interbank market”, – the experts of the Agency.
Moody’s also expects that state support will continue to have a stabilizing effect on the ratings of the largest systemically important banks of Russia during the forecast period, given the number of initiatives and statements of the representatives of the Central Bank of the Russian Federation and the government about maintaining support Russian banks affected by international sanctions.
Moody’s part of the “big three” international credit rating agencies along with Standard & Poor’s and Fitch Ratings. They all provide the world’s credit markets with independent and forward-looking credit ratings, analytical researches and data.