Template-Type: ReDIF-Article 1.0 Author-Name:Michael Khromov Author-Name-First:Michael Author-Name-Last: Khromov Author-Workplace-Name: Gaidar Institute for Economic Policy Title: Banks: deterioration of assets quality and earnings reduction Abstract: In 2015, deterioration of bank assets quality and reduction of profitability obtained from net operating income have led to a drastic fall of bank earnings. This deprived the banking sector of the main source of capital base replenishment while capital adequacy level was close to a critical point. Up to the end of summer 2015, bank capital growth was mainly true of major banks. As a result, while the banking sector was increasing capital base the significant number of banks still operated with insufficient bank stock to sustain further deterioration of assets quality without the additional support. Classification-JEL: E21, E41, E51, E58, G21 Keywords: Banking sector, Russian Economy Journal: Russian Economic Developments Year: 2015 Issue: 11 Month: November Pages: 32-34 File-URL: http://www.iep.ru/files/RePEc/gai/recdev/624Khromov.pdf File-Format: Application/pdf Handle: RePEc:gai:recdev:624