S&P: Russian banking turbulent

Standard & Poor's said in a report that the Russian banking sector has had a short and turbulent history and when banks default, recoveries have so far been minimal.

"An unpredictable bankruptcy regime, political and business conflicts, asset stripping, uncertain shareholder support and the relatively risky credit profile of the banking sector combine to keep recovery prospects low," said S&P credit analyst Ekaterina Trofimova.

Moreover, slowness in bringing banks to liquidation and protracted court proceedings can cause significant delays in payments, the agency said.

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