SOCHI, Sep 5 (PRIME) — The Central Bank of Russia (CBR) estimates the possible losses of Russian banks due to the European stock decline at around 350 billion rubles, Sergei Moiseyev, deputy head of the CBRs financial stability department, said Monday.
Meanwhile, Moiseyev added that Russian banks annual profits would allow them to compensate for all these possible losses.
Moiseyev said that the CBR has carried out stress-tests to examine the impact of a possible 20%-decline in the main European stock indices on Russias banking sector. Moiseyev added he believed Eurozone stocks affected by the debt crisis to be the main threat for Russias financial sector.
The tests showed that Russian banks could lose 290 billion rubles in their total bond portfolios and 61 billion rubles in stocks portfolios from a possible decline in European indices, which also affect the Russian securities market.
(29.0604 rubles U.S. $1)