Rating agency's report published
Most banking sectors in the CIS and Georgia for 2014 have "stable" outlook, based on the agency’s expectations that operating environment will not experience significant changes. This is stated in the report of Fitch Ratings, published on the agency's website.
At the same time risks for macroeconomic stability have intensified in Ukraine and, to a lesser extent, in the Republic of Belarus. High growth in retail lending and constrained economic growth are difficulties for Russian banks. Rapid growth of consumer lending is also observed in Kazakhstan and Azerbaijan.
Most region's banking systems still have significant basic flaws, which makes a total of low levels of ratings. Banks in Kazakhstan and Ukraine still bear the strongest load on the part of high loan impairment, while some lending institutions in Russia and Azerbaijan have serious problems in the corporate portfolio of past periods.
Banks of Belarus and Uzbekistan are exposed to directive lending and deregulation of the economy. Russia, Kazakhstan, Azerbaijan and Uzbekistan depend on commodity prices, also in Ukraine, Belarus and Georgia there is weak position of external finance.
