Analysts predict how many banks could lose their license in 2021

According to researchers of the Expert RA rating agency, 33 financial organizations may cease to exist.

“The value of the <banking sector health> index at 91% as of January 1, 2021 means that up to 33 credit institutions (9% of the index's calculation base) are in a high-risk zone at the dawn of 2021,” RIA Novosti quotes the research report of Expert RA.

Analysts believe the banking sector will continue consolidation this year with ineffective banks leaving the market. Besides, some financial institutions will be swallowed up by larger market participants.

A number of smaller players are likely to voluntarily cancel their licenses. At the same time, the experts predict the strengthening of the banking sector health index. They note that the indicator will not demonstrate high growth rates until the economic activity has been recovered and the banks have adapted themselves to new market realities.

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