Wednesday, 28 August 2013

Sberbank Raises Provisions as Economy Slows | Business | The Moscow Times

Sberbank Raises Provisions as Economy Slows | Business | The Moscow Times:

"Russia's largest bank, Sberbank, reported a big rise in provisions against bad loans Wednesday, highlighting concerns that households might struggle to keep up debt repayments in a slowing economy.

Russian banks have piled into high-margin consumer lending as demand for credit has slowed at companies.

However, new Central Bank regulations require lenders to set aside more money to cover potential defaults on high-interest loans, potentially weakening their capital position, while a slowing economy has raised fears that more consumers will struggle to service their debts."

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