°
Newark

Experts have told how much banks will lose their license in 2020

A license for the current year will not lose more than 15 Russian banks, compared to 27 credit institutions a year earlier, the rate of withdrawal of licenses will decline, largely due to the suspension of three months on-site inspections of the Central Bank, told RIA Novosti Director on Bank ratings "Expert RA" Ludmila of Kozhekina.

Central Bank of 14 July revoked the license of the "National Bank of Tuva", it was the first revocation of the license from 31 January of the current year. In January 2020, the regulator has revoked the licenses of four credit institutions. In late March, the Bank of Russia has suspended inspections of banks and non-Bank financial institutions, renewing them on 1 July this year.

Clearing of the market was largely suspended by the epidemic COVID-19, but now, despite the fact that some regulatory concessions are still in force, the Central Bank returns to the current problems in the improvement of the market from unfair participants, agrees with his colleague senior managing Director of rating Agency NKR Alexander Proklov. The chief of analytical management of BKF Bank Maxim Osadchiy also said that the end of the pandemic will be accompanied by the resumption of withdrawals.

Managing Director – head of the group ratings of financial institutions of an ACRE Armen Dallakyan noted that in risk are small banks outside the top hundred, banks specializing in lending to SMEs and households and having insufficient capital cushion. "Accordingly, many small banks will leave the market in the next few years, and the concentration of the banking sector will grow," he says.

According to him, large, strong banks in General will maintain their competitive advantages and weak banks will become weaker. In the NKR also don't expect feedback from large banks. Thus in NKR at the beginning of the year predicted to leave the market in 2020 may 25-30 credit institutions. "We believe that the actual number of revoked licenses will be below our initial forecast," - said Komarov.