At least three major banks in Russia are considering seeking a bailout from the Bank of Russia due to financial struggles linked to the ongoing war in Ukraine. Executives have privately discussed the necessity of approaching the central bank if their financial situations do not improve within a year. Although official data suggests a stable banking system, internal assessments reveal worsening balance sheets. The banks' decisions will hinge on the accumulation of bad loans in the coming year, amid overall low levels of reported problem debt.
Executives in at least three of the country's big banks have considered the risk that they may need to ask Russia's central bank for a bailout in the next year.
The likelihood of asking for a bailout will depend on how many bad loans the banks continue to accumulate this year.
Stress in the banking sector is another sign of how Russia's economy has struggled to bear the costs of its war in Ukraine.
The share of "problem loans" to corporate borrowers stood at around 4% as of October 2024.
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