Abstract

The Russian banking sector in November was affected by the same key adverse trends that have been prevailing over the recent months. The monetary authority’s resources still served as the principal source of funding for banks, which is indicative of a systemic shortage of traditional types of liabilities. This resulted in slower growth in retail and corporate lending. The credit portfolio’s quality was deteriorating mainly in the retail segment of the lending market, however, increased contributions to the provisions remained the key factor reducing the return on assets in the banking business.

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