Russia in the spotlight Q1 2016

08.04.2016
- The Russian banking sector: the helping hand of the CBR
- The Russian economy in winter: warming up 
- Inflation: back in the single digit territory 


The Russian banking sector: the helping hand of the CBR

The Russian banking system is financially stable, as attested by the International Monetary Fund and the World Bank on 31 March 2016 following a comprehensive review of Russian banks. This stability is a result of timely support by Central Bank of Russia, which allowed the banks to maintain capital adequacy ratio sufficiently while facing deteriorating credit quality and stalling growth of assets. In this update on the banking system we review the results of 2015 and the ongoing challenges.


The Russian economy in winter: warming up

The dynamics of most of economic indicators deteriorated in annual terms in December, but showed significant improvement during the other two winter months. Initial deterioration was largely due to a high base effect. Further recovery was driven by a low base effect, inflation slowdown and a leap year effect in February.


Inflation: back in the single digit territory

Inflation dropped substantially in Q1 as the impact of ruble depreciation on prices has been low since November last year and the price jump of Q1 2015 (>7%) no longer affected the annual inflation figure.