Russian banker warns lenders' troubles to grow - by Catrina Steward
Russia's banking crisis has only just started, a leading financier warned Wednesday, as lenders could face a fresh wave of defaults on loans and weak economic activity. "The crisis is just beginning for the banking industry," German Gref, chief executive of state-backed Sberbank, Russia's largest lender, told a conference. "The crisis will spill over from the real sector of the economy."
Eight months on from Russia's stock market collapse and a liquidity crisis in the financial sector, the rapid rise in bad loans threatens to stall the recovery of the banking sector and the real economy. Some domestic banks are only starting to acknowledge the problem as companies miss payments, face bankruptcy or cede shares to banks put up as collateral.
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