All Things Newz

Russia’s FX corporate loans fell by $2.5 bln in June –

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MOSCOW — The volume of corporate loans in foreign currency fell by $2.5 billion in Russia in June, the central bank said on Monday, but rouble loans led to 0.1% growth in the overall corporate credit portfolio.

The central bank, which slashed its key rate to 8% on Friday, has not reported banking sector profit or loss since before Russia sent tens of thousands of troops into Ukraine on Feb. 24 in what Moscow calls a special military operation.

Western nations hit Russia’s financial sector with unprecedented sanctions and banks have also had to contend with sharp interest rate swings.

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“The second quarter was not easy, but banks are coping with the challenges and the results are not bad in general,” said Alexander Danilov, director of the central bank’s banking regulation and analytics department.

The inflow of 555 billion roubles ($10 billion) of funds from individuals into bank accounts in June was evidence that savings behavior was persisting, the bank said in a report on Monday.

Danilov said this was surprising as interest rates had decreased, but showed that people were trusting banks with their money.

The central bank said retail lending was up 0.4% in June, returning to growth after contraction in April-May. ($1 = 55.5000 roubles) (Reporting by Reuters, Editing by William Maclean)

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