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Corporate Lending in 2020: Growth and Stabilization

Sergey A. Zubov – Senior Researcher of the Russian Presidential Academy of National Economy and Public Administration, Candidate of Economic Sciences, Associate Professor (Moscow, Russia). Е-mail: This email address is being protected from spambots. You need JavaScript enabled to view it.

In H1 2020, Russian banks notably increased the volume of corporate lending. This was facilitated by an increase in demand for borrowed funds from enterprises due to a drop in revenue; regulatory measures of the Central Bank that stimulate soft lending; a drop in interest rates as a result of monetary policy easing conducted by the Central Bank; and the accumulated liquidity by the banking sector. In H2 2020, as the economic situation was back on track, the pace of lending declined and began to match the level of 2019.

Risks for the banking sector remain due to increased uncertainty about the possible spread of the pandemic, price volatility in the oil market, and the unstable nature of the corporate sector recovery.

Key words: Russian banking sector, corporate lending, Bank of Russia, pandemic.

JEL-codes: D81, E58, G21, G32.