Marginality of credit operations of Russian banks in conditions of credit restrictions

Abstract

In the context of increasing credit constraints and macroeconomic volatility, the Russian banks are facing pressure on marginality of credit operations, which requires searching for new strategies for managing interest margins. The article provides an economic and statistical analysis based on the data of the Russian banking sector activities for 2022-2024, including the calculation of absolute and relative indicators; the analysis for marginality, profitability and cost of funding. A substantive analysis for the results of international studies was carried out to identify key factors of bank profitability in various macroeconomic conditions as well. A scenario analysis of changes in the interest margin of Sberbank PJSC was conducted. It was found that tightening monetary policy and macroprudential regulation led to a decrease in the net interest margin of the Russian banks, especially in the segment of long-term lending to legal entities. The largest banks, including Sberbank PJSC, demonstrate greater margin stability due to optimization of the resource base and diversification of the loan portfolio. The main adaptive strategies were transition to short-term lending, use of risk-based pricing and development of alternative financial services. In the context of growing regulatory and market restrictions, the Russian banks are forced to restructure business models, develop IT infrastructure at an accelerated pace and implement new approaches to pricing. The key factor in sustainability remains the ability to manage margins flexibly using optimization of the product portfolio and funding costs.