Number of Loss-Making Institutions Increases in Russia's Banking Sector
According to data from the Central Bank of Russia, the number of loss-making credit institutions rose to 86 in the first half of 2026.
There has been a noticeable increase in the number of institutions reporting losses in Russia's banking sector. According to data from the Central Bank of Russia, 24.5% of credit institutions recorded losses in the first six months of 2026, bringing the total number of loss-making institutions to 86.
Number of Loss-Making Institutions Increases
According to data released by the Central Bank of Russia, 24.5% of credit institutions in the country recorded losses in the first six months of 2026.
The total number of loss-making institutions surged by 87% since the beginning of the year to reach 86, with 65 of them being banks.
Total Amount of Losses in the Sector
It was noted that the total losses recorded by the banking sector in the first half of the year stood at approximately 90.2 billion rubles.
Rising costs and non-performing loans have negatively affected the financial structure, particularly of small-scale financial institutions.
Small and Regional Banks Under Pressure
Economic pressures and issues are concentrated mostly on small-scale and regional banks.
These institutions, which gathered high-cost deposits during the high-interest-rate period, failed to increase their revenues at the same rate during the interest rate cut cycle.
Non-Performing Loans and Provisions
The ratio of troubled loans in corporate lending exceeded 11% in the final quarter of 2025.
This rate nearly doubled compared to the 5.8% level in the same period of the previous year, forcing banks to set aside higher provisions.
Liquidity Deficit Nears Record Levels
Liquidity tightness in the sector is also among the main factors increasing pressure on banks.
In mid-August, the liquidity deficit in the system rose to 2.7 trillion rubles, marking the highest level seen since March 2022.
Central Bank Expectations and Future Forecasts
Despite these developments, the Central Bank of Russia considers the overall outlook of the sector to be stable and expects total profits to reach 3.9-4.4 trillion rubles by the end of 2026.
Experts predict that the exit of small banks from the sector through mergers or acquisitions could accelerate in the upcoming period.