Russian banks avoid risk.

1000 words at doctorate reading level: The banking crisis in the US and Europe will not directly affect our financial system. So says the head of the Russian Central Bank Elvira Nabiullina. Why are their problems not terrible for the Russian market? Because the Russian market is now much less connected with the global financial system. Western banks have problems due to the fact that during a long period of low rates they accumulated risks, bought assets that are now depreciating. And there are no such risky assets on the balance sheets of Russian banks. However, the situation in the US may indirectly affect the Russian economy by reducing global demand. "There is no direct impact on the Russian financial system. But this new factor in itself adds uncertainty about the future trajectory of the global economy. This situation may increase the risks in the global economy, the risks of a recession in the global economy. For Russia, a slowdown in the global economy means a decrease in demand for our export goods," said Elvira Nabiullina, Chairman of the Bank of Russia. A week ago , Silicon Valley, the 16th bank in terms of assets in the United States, filed for bankruptcy . This led to a chain reaction : an outflow of depositors and a fall in the shares of other banks. The next victim of the sudden crisis was Signature Bank. To prevent panic, the Fed announced the launch of a new mechanism for providing funds, in a week banks raised almost $165 billion. But now there are problems in Europe. Stock quotes of European financial institutions also went down. To keep troubled bank Credit Suisse from sinking , the Swiss National Bank plans to allocate $54 billion. The Russian Central Bank hopes that Western Central Banks will now be able to apply the experience gained during previous crises. And Russian financial institutions experienced an unprecedented external shock last year and, according to Elvira Nabiullina, they withstood this risk and retained their ability to lend. Unlike the Western ones, they are pleased with the growth in the value of shares. Today it became known that Sberbank can allocate a record 565 billion rubles for dividends. On this news, the bank's shares soared by 9% and became the growth leaders. And what do they say in the Central Bank about a possible reduction in mortgage rates? The Central Bank of Russia is against setting a mortgage rate from developers at 3-4%, because it is very risky. In addition, the regulator observes an increase in the share of loans with a low down payment, as well as with a high debt burden. The numbers are really scary. 44% of mortgage loans in the country are provided to borrowers who spend 80% of their income on debt repayment, which is why they risk delinquent debts. "There are a lot of serious questions regarding various mortgage schemes from developers, tranche mortgages with a return on cashback. We are absolutely not satisfied with these schemes, the devil knows what , as you said. I agree with this. And we are not only monitoring this system, but we are also ready make a decision on them," Elvira Nabiullina, chairman of Russia's main banking regulator, warned. And one more recommendation from the head of the CBR. Now banks are required to disclose lending conditions in a visual, tabular form that is understandable to everyone. If such information was not given to the client, this is a violation. If you were misled by the bank and issued a loan or credit card, you may consider giving them up within 14 days without any fines.

The global banking crisis that has plagued the United States and Europe has been a major concern for many countries, including Russia. However, the head of the Russian Central Bank, Elvira Nabiullina, has stated that the crisis will not directly affect the Russian financial system. This is due to the fact that the Russian market is much less connected with the global financial system than it was in the past. The Western banking crisis has been caused by a long period of low interest rates, which led to the accumulation of risks and the purchase of assets that are now depreciating. Russian banks, on the other hand, have avoided such risky assets on their balance sheets. Therefore, there is no direct impact on the Russian financial system. However, the situation in the US may indirectly affect the Russian economy by reducing global demand for Russian export goods. The bankruptcy of Silicon Valley Bank in the US triggered a chain reaction, leading to an outflow of depositors and a fall in the shares of other banks. To prevent panic, the Fed announced the launch of a new mechanism for providing funds, and in a week banks raised almost $165 billion. Similar problems have also been seen in Europe, where stock quotes of European financial institutions have fallen, and the Swiss National Bank plans to allocate $54 billion to keep troubled bank Credit Suisse from sinking. The Russian Central Bank hopes that Western Central Banks will now be able to apply the experience gained during previous crises. Russian financial institutions experienced an unprecedented external shock last year and, according to Elvira Nabiullina, they withstood this risk and retained their ability to lend. Unlike Western banks, Russian banks have seen growth in the value of shares. For example, Sberbank can allocate a record 565 billion rubles for dividends, and the bank's shares have soared by 9% and become the growth leaders. While the Russian financial system may not be directly affected by the banking crisis, the Central Bank is still taking measures to reduce risk. For example, they are against setting a mortgage rate from developers at 3-4%, as it is very risky. Additionally, the regulator has observed an increase in the share of loans with a low down payment, as well as with a high debt burden. Currently, 44% of mortgage loans in the country are provided to borrowers who spend 80% of their income on debt repayment, which puts them at risk of delinquent debts. The Central Bank of Russia is also against various mortgage schemes from developers, such as tranche mortgages with a return on cashback. They are monitoring these schemes closely and are ready to make a decision on them if necessary. In addition, the Central Bank is requiring banks to disclose lending conditions in a visual, tabular form that is understandable to everyone. If such information is not given to the client, it is considered a violation. If a client was misled by the bank and issued a loan or credit card, they may consider giving them up within 14 days without any fines. In conclusion, while the banking crisis in the US and Europe may not directly affect the Russian financial system, there may be indirect effects through a reduction in global demand for Russian export goods. Therefore, the Central Bank of Russia is taking measures to reduce risk and is closely monitoring various mortgage schemes and lending conditions.