Russia’s central bank warns of growing financial sector risks

MOSCOW (Reuters) – Russia’s central bank governor on Thursday warned of possible “systemic risks” in the banking sector as lenders scramble to make up for a slump in profits recorded last year.

Speaking at a banking forum near Moscow, Governor Elvira Nabiullina said the regulator was concerned by declining standards in mortgage lending and falling rates of early repayments, suggesting consumers were feeling the pinch after a year of economic pressure on the Russian economy.

“We will not let systemic risks come to pass,” Nabiullina said, pledging the central bank was paying close attention to banks’ lending practices and was ready to tighten the regulatory screws if needed.

(Reporting by Alexander Marrow and Elena Fabrichnaya; Editing by Mark Trevelyan)