European Intelligence Warns: Russia on Brink of Banking Crisis; 10 Percent of Loans Non-Performing

Reuters reported that an assessment by a European intelligence agency indicates Russia will face an "explosive" banking crisis as banks bear the mounting burden of financing the war economy, making them increasingly vulnerable to new sanctions by the European Union. The issuance of subsidized loans to defense companies, homeowners, and state-supported projects has masked mounting risks; it is estimated that 10 percent of corporate loans are now non-performing, while some major banks reported non-performing retail loan ratios of up to 15 percent in 2025. The assessment also noted that last year more than 500,000 Russian citizens declared bankruptcy, and more than 13 million people simultaneously hold at least three loans.

• Subsidized lending to defense companies, homeowners and state-backed projects has concealed rising risks in the banking sector
• An estimated 10% of corporate loans are now classified as non-performing
• Some major banks reported non-performing retail loan ratios reaching 15% in 2025
• Over 500,000 Russian citizens declared bankruptcy last year
• More than 13 million Russians currently hold at least three loans simultaneously. Russia's Central Bank, however, has rejected concerns about a systemic crisis, arguing that despite slow economic growth, the banking sector still maintains sufficient capitalization.

# European Intelligence Warning: Russia Facing 'Explosive' Banking Crisis; 10% of Loans Become Non-Performing