(MOSCOW) – Pro Kremlin economists have publicly acknowledged that Russia has entered a banking crisis, citing surging bad loans, heavy withdrawals by depositors and widespread closures of bank branches.
Analysts aligned with the Russian authorities said the share of non performing assets in the banking system has crossed levels widely recognised as signalling systemic stress. They said bad loans now exceed 10 percent, a threshold commonly used to define a banking crisis.
According to the figures cited, non performing loans among small and medium sized businesses have reached about 19 percent, while corporate bad loans stand at roughly 11 percent. Economists said the real figures could be higher due to state pressure on banks to restructure debts and delay recognition of losses.
They also pointed to a sharp increase in deposit withdrawals during 2025, describing a sustained run by households and businesses seeking to move money out of the banking system amid rising prices, higher taxes and growing uncertainty about Russia’s economy.
Russian banks have urged customers to curb withdrawals, but confidence has been further undermined by repeated outages at automated teller machines and intermittent internet disruptions that have affected electronic payments, according to analysts.
The Kremlin is reported to have taken emergency measures last year, including the sale of about 71 percent of physical gold held in Russia’s National Wealth Fund, but economists said these steps failed to stabilise the system.
The pressure has led to forced reorganisations across the sector. Around 1,700 bank branches were closed across Russia in 2025 alone, including about 900 branches operated by the state controlled lender Sberbank. Many of the closures were in remote regions where access to banking services is limited.
Economists said the contraction reflects deeper strain caused by sanctions linked to the war in Ukraine, Ukrainian long range strikes on economic infrastructure and prolonged economic mismanagement by the Russian dictator Vladimir Putin.
They warned that Russia’s war focused economy is now stagnating even in sectors linked to defence spending, making it harder for banks to support borrowers or absorb losses.
Some analysts compared the current situation to the late Soviet period, when financial instability preceded broader economic collapse. They said the banking system acts as the bloodstream of the economy and signs of failure inside major institutions suggest deeper problems than official data reveal.
Russian opposition figures and former Kremlin allies have also warned publicly of growing social and political risks as economic pressure mounts, although the authorities continue to restrict public debate through censorship.
