Russia's banking sector in wartime

Laura Solanko

No 3/2026, BOFIT Policy Briefs from Bank of Finland Institute for Emerging Economies (BOFIT)

Abstract: Russia's isolation from global financial markets and government programmes to support bank lending initially fuelled a wartime lending boom in Russia. With economic growth now stalled and borrowing costs rising, lending growth has slowed. This shift, in conjunction with increased public sector borrowing needs, has raised worries about the quality of banking sector's loan portfolios, especially with respect to corporate lending. We examine available official banking statistics to assess the ability of Russia's banking sector to digest mounting government debt.

Keywords: Russia; banking; government bonds (search for similar items in EconPapers)
Date: 2026
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