OREANDA-NEWS. 38 Russian banks may face defaults over the next year. This follows from the banking sector health index compiled by the rating agency Expert RA.

According to analysts, in the last quarter of 2019, the health index of the banking sector for the first time since the beginning of 2018 exceeded 90 %, which is caused by a decrease in the number of defaults of financial institutions. So, in 2018 licenses were lost by 57 banks, and in 2019 only 28 organizations were deprived of them.

Nevertheless, Expert RA points out that nowadays 38 credit organizations (9.5 %) are still in the high-risk zone and their ratings are unlikely to improve in the near future.

Validation Managing Director of Expert RA Yury Belikov explained that the forecast is not a blacklist, recalling that the calculations are based on nothing but probabilistic estimates of defaults.