EBRD sees no sign of banking crisis in Russia

Source: Interfax

The European Bank for Reconstruction and Development (EBRD) does not think there is any prospect of a banking crisis in Russia.

The EBRD does not think a situation parallel to the August 1998 crisis has arisen over the last few months, Ivan Szegvari, EBRD senior economist, said at a presentation of the bank's report on transition economies.

The EBRD bases its judgement not only on the price of oil, which is high, but on the level of institutional development and general macroeconomic stability, Szegvari said.

There were signs of over-enthusiasm early October, due partly to Russia's rating upgrade to investment level, but the market for corporate liabilities and securities also strengthened, and banks are lending more to private companies.

Szegvari said he welcomed the Duma's recent decision to pass the law on bank deposit insurance, which he said was important for the banking sector's development and regulation.