{"id":823093,"date":"2026-07-25T14:39:40","date_gmt":"2026-07-25T14:39:40","guid":{"rendered":"https:\/\/www.newsbeep.com\/au\/823093\/"},"modified":"2026-07-25T14:39:40","modified_gmt":"2026-07-25T14:39:40","slug":"significant-problems-in-russian-banking-system-as-public-withdraws-cash-en-masse","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/au\/823093\/","title":{"rendered":"\u2018Significant Problems\u2019 in Russian Banking System as Public Withdraws Cash en Masse"},"content":{"rendered":"

Cash in circulation rose by 513 billion rubles (\u20ac5.75 billion) in the first half of July, after increasing by 479 billion rubles (\u20ac5.37 billion) in June, according to data from the Central Bank of Russia. Since the start of February, the total has climbed by more than 2.4 trillion rubles (\u20ac26.9 billion).\u00a0<\/p>\n

The spike comes amid a wave of Ukrainian drone attacks that have repeatedly prompted the Kremlin to\u00a0shut down mobile internet<\/a>\u00a0across large parts of the country, leaving many people unable to pay by card. Moscow says the outages are intended to help counter the strikes.\u00a0<\/p>\n

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Follow our coverage of the war on the @Kyivpost_official<\/a>.<\/p>\n

It also comes as\u00a0economic pessimism reaches its highest level<\/a>\u00a0in two decades. A recent Gallup survey found that 60% of Russians believed local economic conditions were worsening, while 56% said living standards were declining.\u00a0<\/p>\n

Bank borrowing surges\u00a0\u00a0<\/p>\n

Economists say persistent inflation, rising taxes and tighter government oversight of financial transactions have added to the uncertainty and\u00a0encouraged some Russians<\/a>\u00a0to move money outside the banking system.\u00a0<\/p>\n

\u201cIn essence, the country has reached an imbalance between money returning to banks and money being withdrawn by the public,\u201d economist Igor Lipsits told\u00a0The Moscow Times.\u00a0<\/p>\n

The flight into cash has left banks short of ruble liquidity, forcing the Central Bank of Russia to sharply increase lending to the sector.\u00a0<\/p>\n

<\/p>\n

\"Russia<\/p>\n

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Over the first three weeks of July, the central bank provided lenders with an additional 2.099 trillion rubles (\u20ac23.5 billion) through repo operations, bringing their total debt to the regulator to 6.243 trillion rubles (\u20ac70.0 billion), nearly double the level at the end of last year.\u00a0<\/p>\n

\u201cThe Bank of Russia is trying to treat the liquidity problem by refinancing the banking system, primarily the largest banks,\u201d economist Alexander Abramov told\u00a0The Moscow Times.\u00a0\u00a0<\/p>\n

\u2018Significant problems\u2019\u00a0<\/p>\n

Abramov also pointed to \u201csigns of problems\u201d in the interbank market, where banks lend to one another, with borrowing costs remaining above the central bank\u2019s key rate despite the regulator\u2019s increased liquidity injections.\u00a0<\/p>\n

The strain is being compounded by troubled loans, whose share has exceeded 10%, according to central bank data.\u00a0<\/p>\n

Under International Monetary Fund methodology, that level signals \u201csignificant problems\u201d in the banking system that could take a long time to resolve, analyst Maximilian Hess told\u00a0The Moscow Times.<\/p>\n","protected":false},"excerpt":{"rendered":"Cash in circulation rose by 513 billion rubles (\u20ac5.75 billion) in the first half of July, after increasing…\n","protected":false},"author":2,"featured_media":823094,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[11],"tags":[64,63,99,164],"class_list":["post-823093","post","type-post","status-publish","format-standard","has-post-thumbnail","category-economy","tag-au","tag-australia","tag-business","tag-economy"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/posts\/823093","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/comments?post=823093"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/posts\/823093\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/media\/823094"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/media?parent=823093"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/categories?post=823093"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/tags?post=823093"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}