The global financial crisis caused by the U.S. subprime market reached Russia in early August, causing liquidity problems.
"The government and the Central Bank are ready to support Russian banks, but it must be done carefully, not at the expense of macroeconomic stability," Vladimir Putin said at a meeting with Andrei Kostin, the chairman of the state-controlled bank, Vneshtorgbank.
Russian banks have been seeking refinancing sources on the domestic market, including through interbank crediting and short-term Central Bank loans. On November 28, repo refinancing operations through the Central Bank hit a record of 300 billion rubles ($12 billion).
Kostin said that while Western banks, including the largest bank in the world, Citibank, are going through hard times and suffering losses, "the Russian banking sector is showing enviable steadiness and stability" thanks to the help of the government and the Central Bank.
But Kostin added that "Russian banks still need additional long-term liquidity" mostly through domestic loans rather than overseas borrowing, which is expensive.
