The sharp drop in liquidity on the interbank market and the rise of the daily interest rates are more likely to adversely affect the country's numerous small banks than its heavyweights, on which the Fitch ratings are focused, provided that the situation does not deteriorate further, the agency points out in a press release circulated Tuesday. Large Russian banks don't usually come to the interbank to borrow, but rather bring funds in.
According to Fitch, the market's response to the revocation of Sozbiznesbank's license on money-laundering charges has led, in turn, to unexpected liquidity shortages in some of the banking sector's segments. The banking community is now looking forward to getting extra liquidity from the Central Bank, as it recently promised to put some in.
Major Russian banks would have been much worse-off if Sodbiznesbank's clientele had been more numerous than 20,000, Fitch argues. It acknowledges, however, that the situation has made smaller private banks more vulnerable.
Fitch agency analyzes operations of thirty Russian banks and finance institutions.
