{"id":36818,"date":"2012-05-11T08:18:46","date_gmt":"2012-05-11T08:18:46","guid":{"rendered":"https:\/\/armbanks.am\/2012\/05\/11\/235492\/"},"modified":"2024-12-15T12:57:12","modified_gmt":"2024-12-15T12:57:12","slug":"russias-banking-sector-can-withstand-average-stress-central-bank","status":"publish","type":"post","link":"https:\/\/armbanks.am\/en\/2012\/05\/11\/36818\/","title":{"rendered":"Russia\u2019s banking sector can withstand average stress- Central Bank"},"content":{"rendered":"<p><strong>YEREVAN, May 11. \/ARKA\/<\/strong>. Russia\u2019s central bank has just completed a stress test of the country\u2019s banking sector. According to the results Russian banking system is sustainable  enough and its capital can withstand average stress.<\/p>\n<p>To assess the stability of the banking system,  officials at Russia\u2019s central Bank conducted a stress test applying to macro-model as of January 1 of 2012. One year was taken as the possible terms for the stress.<\/p>\n<p>Thus, central bank measured the impact of Europe\u2019s debt crisis on each credit organizations.<br \/>\nPessimistic scenario indicates recession for Russian economy to 2% touched off by economy tumbles in EU and 15-20% slip in oil prices and other Russian export goods. This can happen in line with increase in interest rates at Russian financial market and some drop of stock indices.<\/p>\n<p>The extreme scenario ( worst option of economy development) implies GDP drop by 1.4%.<\/p>\n<p>However, officials at the central bank assess the worst option as hardly to occur due to the positive development dynamics of Russia\u2019s economy  as well as favorable situation around Russian exports.<br \/>\nAccording to the calculations, if the pessimistic scenario occurs, the banking system of Russia may lose 1.4 trillion rubles in 2012 ( 27% of the total capital), and in the case of extreme option- 2 trillion rubles (37% of capital).<\/p>\n<p>Credit risk will make up the largest part in losses ( 1.1 and 1.6 trillion rubles respectively): average share of \u201cbad\u201d loans in loan portfolio may rise from 7.7% to 11.5% at pessimistic option, and to 13.6 % &#8211; at extreme one.<\/p>\n<p>Losses from market risks, depending on a scenario, may reach 280-360 billion rubles ( of them interest rate risks make up 65-81%, stock risk \u2013 15-32%, currency risk 3-4%).<\/p>\n<p>Capital deficit of 120 credit organizations may total in 56 billion rubles at pessimistic scenario, and that of 223 credit organizations- 405 billion rubles at extreme scenario. As of January 1, 2012, the share of credit institutions in the banking sector amounted 21% at pessimistic scenario, and 49.8%- at extreme one.<\/p>\n<p>\u201cThe results of the stress tests show that total capital adequacy decreases to 13.1% at pessimistic scenario, and to 10.8% at extreme option,\u201d the central bank informs. Capital adequacy minimal benchmark is  10%. &#8211;0&#8211;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Russia\u2019s central bank has just completed a stress test of the country\u2019s banking sector. According to the results Russian banking system is sustainable enough and its capital can withstand average stress<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":"","tstyn_error":""},"categories":[9214,9216],"tags":[15418,12146,309],"class_list":{"0":"post-36818","1":"post","2":"type-post","3":"status-publish","4":"format-standard","6":"category-banks-en-en","7":"category-news","8":"tag-bank-en-2","9":"tag-russia","10":"tag-309"},"acf":[],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/armbanks.am\/en\/wp-json\/wp\/v2\/posts\/36818","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/armbanks.am\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/armbanks.am\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/armbanks.am\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/armbanks.am\/en\/wp-json\/wp\/v2\/comments?post=36818"}],"version-history":[{"count":0,"href":"https:\/\/armbanks.am\/en\/wp-json\/wp\/v2\/posts\/36818\/revisions"}],"wp:attachment":[{"href":"https:\/\/armbanks.am\/en\/wp-json\/wp\/v2\/media?parent=36818"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/armbanks.am\/en\/wp-json\/wp\/v2\/categories?post=36818"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/armbanks.am\/en\/wp-json\/wp\/v2\/tags?post=36818"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}