Half a trillion as it were: Business flees from Russian banks
Private business flees from Russian banks: in April alone, corporate accounts were devastated by 480 billion rubles. Gazprombank lost the most; its losses amounted to 298 billion. Legal entities withdrew 282 billion rubles from VTB Group banks. Citibank missed 60 billion in corporate accounts.
Holes in the balance sheet had to be plugged by the Central Bank and the Ministry of Finance, which had already brought 543 billion rubles to the Russian banking system. Citizens of Russia, who put 277 billion in deposits, also helped to support credit institutions afloat.
Government money made an interesting circle in the banking system: 352 billion were transferred to AvtoVazBank, which it borrowed from the Central Bank of 338 billion rubles, 205 billion of which were allocated to Promsvyazbank, and another 96 spent on paying off debts to it. The regulator’s money will be used to redeem the bad assets of Promsvyazbank, and the proceeds will be used to pay off debts to the Central Bank itself. That is, with the state money of the Central Bank, the debts of a private bank to the regulator will be repaid.
Also, the banking system was assisted by budgets of all levels from federal to regional in the amount of 133 billion. The state continues to pour money into Gazprombank and Russian Agricultural Bank, but the capital adequacy ratios of credit institutions are falling. At a dollar price of 70 rubles per unit, banks will not withstand capital standards set by the Central Bank, and then the regulator will be forced to lower them.
Holes in the balance sheet had to be plugged by the Central Bank and the Ministry of Finance, which had already brought 543 billion rubles to the Russian banking system. Citizens of Russia, who put 277 billion in deposits, also helped to support credit institutions afloat.
Government money made an interesting circle in the banking system: 352 billion were transferred to AvtoVazBank, which it borrowed from the Central Bank of 338 billion rubles, 205 billion of which were allocated to Promsvyazbank, and another 96 spent on paying off debts to it. The regulator’s money will be used to redeem the bad assets of Promsvyazbank, and the proceeds will be used to pay off debts to the Central Bank itself. That is, with the state money of the Central Bank, the debts of a private bank to the regulator will be repaid.
Also, the banking system was assisted by budgets of all levels from federal to regional in the amount of 133 billion. The state continues to pour money into Gazprombank and Russian Agricultural Bank, but the capital adequacy ratios of credit institutions are falling. At a dollar price of 70 rubles per unit, banks will not withstand capital standards set by the Central Bank, and then the regulator will be forced to lower them.
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