The Central Bank of Russia plans to review 100% of banks’ credit portfolios for technical loans on a quarterly basis. It was announced by Anna Orlenko, the Director of the Banking Supervision Department, at the International Financial Congress in Saint-Petersburg.
Ms. Orlenko commented: “We’re starting the review practice. Although it requires a lot of effort, we’ll reach the objectives. And I’m sure we’ll be able to review 100% of loans every quarter”.
According to Ms. Orlenko, this practice will make sure technical port folios “cannot be created in the first place”.
She also emphasized that technical loans appear from “nobody knows where”, and their risks assessment is rarely done “correctly”.
Ms. Orlenko commented: “We can see that unfortunately, the money is used by the business owners. The intention is clear, however it is camouflaged by technical loans, which makes it difficult to create appropriate reserves and to manage it properly. And that’s why we will make sure banks have no technical loans in their credit portfolios”.Source: https://rns.online/finance/TSB-budet-ezhekvartalno-proveryat-kreditnie-portfeli-bankov-na-predmet-te...