As of September 25, 2026, Russia’s banking system has come under a new wave of economic pressure. The day before, Central Bank Governor Elvira Nabiullina reported a significant deterioration in the quality of the credit portfolio: the share of non-performing loans had increased by 0.6 percentage points, approaching 12%.
For banks, this means that an increasing share of outstanding loans is tied to borrowers experiencing difficulties servicing their debt. At the same time, corporate lending continues to expand. According to the Bank of Russia, corporate loans grew by 1.4% in August alone, reaching 13.2% growth year-on-year. In July, the volume of loans showing signs of deterioration increased by another 200 billion rubles.
Another warning sign is the behavior of depositors. The Central Bank has reported increased demand for cash. Nabiullina attributed the trend to several factors, including changes in tax conditions, circulating rumors and lower deposit rates. The regulator expects banks to be able to adapt to the increased demand.
Meanwhile, Russia’s financial sector continues operating under tight monetary conditions. The Central Bank’s key interest rate currently stands at 14% per year. The regulator says lending activity remains elevated while inflationary risks persist.
This creates a difficult combination: lending continues to grow rapidly while the volume of distressed debt is also increasing, households are showing greater demand for cash, and the cost of money remains high.
The Bank of Russia maintains that the banking sector remains financially stable and that troubled loans are largely covered by provisions and high-quality collateral. However, the accelerating deterioration in credit quality has become one of the key signals for Russia’s financial system in the autumn of 2026.
That is why the current situation is attracting particular attention from the financial market. The key question is no longer simply how much banks are lending, but how much of that money will ultimately be repaid.
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