russian Banks Are No Longer Hiding Their Panic over Non-Performing Loans

russian bankers are no longer hiding their panic over rising credit risks, weak investment and business problems. At the 23rd  international banking forum in st. petersburg, the heads of the central bank of the rf  and the country’s largest banks effectively acknowledged that among war, maintaining lending, high interest rates and external restrictions is becoming increasingly difficult.

According to governor of the central bank of the rf elvira nabiullina, the proportion of non-performing loans has risen over the past year and now stands at just under 12%. The number of businesses asking for changes to their debt repayment terms is increasing. These include sellers on online marketplaces and companies that have suffered losses due to attacks on manufacturing and other infrastructure.

Corporate lending is growing by about 12% in 2026, but the new figures are not having the expected effect on the russian economy. High interest rates make money too expensive, while businesses are facing shortages of workers and technology. Conditions for exporters are deteriorating. Inflation is forcing the central bank of the rf to maintain a tight monetary policy.

chairman of the management board of “vtb” andrey kostin has stated that some major entrepreneurs are refusing to invest in their own businesses due to the high cost of financing, changes to regulations, external restrictions and fears of “nationalization”. Even existing funds are not being channeled into new production capacity.

Another area of risk is medium-sized businesses in the regions. head of “alfa bank” vladimir verkhoshynsky has identified this segment as the main focus for banks due to the risk of a deterioration in companies’ solvency. Banks are already discussing payment holidays, debt restructuring and state support.

russia’s authorities are attempting to prop up the system through cheap schemes, debt deferrals and state bailouts. But these measures merely postpone the problem. Businesses are accumulating debt, banks are taking on risks, while the state is assuming an increasing share of the costs. The war is consuming resources that could otherwise be channeled into modernizing the economy, leaving russian businesses with a simple choice: take out expensive loans, survive on state support, or wind up operations.