Russian Deposit Insurance Agency Sees Second Wave of Crisis by End of Year

According to RIA Novosti the head of Russia’s Deposit Insurance Agency, Alexander Turbanov, said in a Radio interview that his agency, who had earlier predicted the second wave of the banking crisis to hit Russia in the fall, had pushed back the date to the end of this or beginning of next year.

From the article:

¨We assumed (earlier) that the second phase of the crisis would start in automn. May be it will come at the end of the year, may be at the beginning of next year,¨ said Turbanov in an invterview with Echo of Moscow.
According to him, the acute phase of the crisis was overcome, and the banking system operates in a stable way, but has not yet reached its pre-crisis level. The head of DIA noted that the first phase was due to a liquidity crisis, while the second wave may be due to bad assets.
“It (the second wave) can have a latent and extended character”, – believes Turbanov. He also said that the current level of bad debts of [Russian] banks is not yet cause for concern. “Delays [ past dues] of up to 5%  is the norm in the global banking practice,” – said the head of DIA. However, in his estimation, by the end of the year is a real outstanding debt (not just reporting) could range from 10 to 20%.

Interesting that he makes the distinction between real and reported. It seems that Russian banks are no more trustworthy in their accounting techniques than their US counterparts.