04:41Russia: Volatility in Western financial markets will have no direct impact on Russian economy - CenBank Chairperson Nabiullina
During a press conference in Moscow on Friday, Russian Central Bank Chairperson Elvira Nabiullina stated that volatility in Western financial markets will not directly affect the Russian economy, but will add uncertainty to the global economy's future trajectory.
"On the one hand, we see the financial sector's vulnerability to interest rates and other risks. On the other hand, current inflationary pressures are still high. Despite recent strong data, this situation may increase the risks in the global economy and the risks of a global economic recession," Nabiullina said.
She also stated that the situation in the financial sector in Europe and the United States does not pose a threat to Russian banks.
"It is much less linked to the global system. Second, our banks are less vulnerable to the kind of vulnerability that banks in the United States and the European Union exhibit," stressed the head of the Central Bank.
Silicon Valley Bank declared bankruptcy on Friday, March 10. Following it, Silvergate Bank and Signature Bank went bankrupt. They were taken over by the Federal Deposit Insurance Corporation.
According to media reports, approximately 200 banks may go bankrupt as a result of the current situation. The monetary policy of the United States Federal Reserve System (Fed), which raised interest rates due to high inflation, is the cause of the banking system's potential collapse. As a result, banks will be unable to meet their obligations in the future and may go bankrupt.
After the bank collapse, US President Joe Biden told Americans at a White House press conference in Washington on Monday that their 'banking system is safe,' but he ignored questions from reporters about the potential crisis.
04:41During a press conference in Moscow on Friday, Russian Central Bank Chairperson Elvira Nabiullina stated that volatility in Western financial markets will not directly affect the Russian economy, but will add uncertainty to the global economy's future trajectory.
"On the one hand, we see the financial sector's vulnerability to interest rates and other risks. On the other hand, current inflationary pressures are still high. Despite recent strong data, this situation may increase the risks in the global economy and the risks of a global economic recession," Nabiullina said.
She also stated that the situation in the financial sector in Europe and the United States does not pose a threat to Russian banks.
"It is much less linked to the global system. Second, our banks are less vulnerable to the kind of vulnerability that banks in the United States and the European Union exhibit," stressed the head of the Central Bank.
Silicon Valley Bank declared bankruptcy on Friday, March 10. Following it, Silvergate Bank and Signature Bank went bankrupt. They were taken over by the Federal Deposit Insurance Corporation.
According to media reports, approximately 200 banks may go bankrupt as a result of the current situation. The monetary policy of the United States Federal Reserve System (Fed), which raised interest rates due to high inflation, is the cause of the banking system's potential collapse. As a result, banks will be unable to meet their obligations in the future and may go bankrupt.
After the bank collapse, US President Joe Biden told Americans at a White House press conference in Washington on Monday that their 'banking system is safe,' but he ignored questions from reporters about the potential crisis.