A surge in wartime borrowing and high interest rates have increased financial strain on Russian households and businesses, raising concerns about the stability of the country's banking sector.
Key facts
- •Corporate debt in Russia has increased by 93% since 2021, while household debt has risen by 57%.
- •A record 636,000 Russians declared bankruptcy in 2025, more than triple the 197,000 recorded in 2021.
- •The think tank CMAKP estimates that problem assets held by banks have exceeded 10% of total loans, amounting to roughly 12 trillion rubles.
- •Banks increased their holdings of Russian government bonds (OFZs) by 3% between January and May 2026, reaching 19.4 trillion rubles.
- •The Central Bank has instructed lenders to continue restructuring loans for companies facing temporary difficulties.
Russia's banking sector is facing growing systemic pressure as corporate and household debt levels rise significantly. Since 2021, corporate debt has grown by 93% and household debt by 57%, driven by government-subsidized lending programs. High interest rates and recent tax hikes are now making it increasingly difficult for borrowers to service these loans.
By the numbers
Rising Bankruptcies and Loan Defaults
In 2025, a record 636,000 Russians declared bankruptcy, a 30% increase from the previous year. This trend continued into the first quarter of 2026, with 137,500 bankruptcies recorded. Corporate insolvencies are also rising; in the first half of 2026, Russian courts declared 3,550 companies bankrupt, while the number of firms entering insolvency proceedings jumped 20.9% to 2,970. Small and medium-sized enterprises are particularly affected. By May 2026, approximately one in six of the 600,000 small and medium-sized enterprises with outstanding loans had fallen behind on repayments. Central Bank data indicates that nearly 10% of microenterprises faced significant loan repayment difficulties over the 12 months leading up to April 2026.
Debate Over Banking System Stability
While the Central Bank maintains that commercial banks are financially healthy and possess sufficient reserves, analysts and international reports suggest the true scale of bad debt is masked by loan restructuring. Official data puts bad corporate loans at 4% of total lending, but a recent European intelligence report estimates that 10% of corporate loans are of 'doubtful' quality. The Moscow-based think tank CMAKP similarly reported that 'problem assets' have exceeded a 10% threshold, suggesting a latent crisis is being hidden by state-owned bank dominance and debt reorganization.
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This article was independently rewritten by ManyPress editorial AI from reporting originally published by The Moscow Times.
