YEREVAN, April 16 / ARKA /. Fitch Ratings says key risks have materialized in different CIS banking markets and, in some cases, remain sources of vulnerability. This, together with authorities' responses to the crystallisation of such risks including provision of support or, in some cases, imposition of losses on third-party creditors, is one of the themes in a presentation published by Fitch.

According to the report titled ‘Key Materialized CIS Banking Risks,’ CIS banking systems have experienced various stresses over the last 12 years, with some significant common causes. Chief among these is mismanagement of foreign currency (FC) risks, such as FC lending to weakly hedged borrowers, an over-reliance on external FC debt and generally high dollarisation of liabilities, and sometimes maintenance of large short open currency positions.

Categories: Banks @en, General news, News, News of the hour | Comments Off on Fitch Ratings: CIS banking risks remain despite authorities' actions

Tags: banking risks, CIS, Fitch, Ratings

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