Page 98 - RusRPTAug22

8.1.5 Liquidity, NIMs & CARs
After recovering somewhat in 2020 the capital adequacy ratio at Russian banks has started to decay in 2021, falling from a 2020 peak of 12.8% in July that year to 11.8% in February this year. Banks are starting to eat into their capital as anecdotal evidence suggest non-performing loans (NLPs) are slowly beginning to rise.
Banks’ capital has been rising steadily in the last three years as Russia emerged from a recession, but in February the tide turned and once the March results arrive the trend of falling capital is likely to accelerate.
The spike in repo deals with the CBR at the end of February also shows clearly the shock to the banking system and also how quickly the CBR dealt with this.
98 RUSSIA Country Report October 2020 www.intellinews.com