How has the crisis influenced the banking sector? Why is the Central Bank increasing its requirements from bankers? How many banks does the economy need altogether? These were the topics discussed by Mikhail Kovrigin, director of the Central Bank of Russia’s Banking Regulation and Oversight Department, at a meeting with members of the HSE Banking Institute.
The HSE has held the fourth annual workshop ‘Banking in Emerging Markets: Challenges and Opportunities’, organized by National Research University Higher School of Economics (CInSt HSE) with the support of the Bank of Finland Institute for Economies in Transition (BOFIT).
While some economists suggest that bankers may be exaggerating the problems in order to win more cheap state funding, most agree that bad loans are set to surge. Y.Gavrilenkov, the HSE expert, mentiones some aspects of the problem.