Russian banks that use questionable practices to inflate their capital cushions will face more scrutiny from the central bank, Deputy Governor Vasily Pozdyshev said.
Such practices include issuing loans to themselves, the central banker said Tuesday at a Moscow conference. The bank will work to “scrub these schemes from capital,” Pozdyshev said.
Regional banks that use foreign accounts to hide risks will also be under the microscope, he said.
The central bank revoked four banking licenses Tuesday, bringing the total this year to 79, as it seeks to clean up the industry.
Loan quality is deteriorating in Russia, where banks are under pressure from a contracting economy. Some also face U.S. and EU sanctions over the Ukraine conflict.
Russia will probably ease capital requirements coming into force to next year to give them more time to adjust to the tougher Basel III standards, Pozdyshev said.