AS the West Some foreign banks, mostly Europeans, will suffer parallel losses if sanctions are imposed against Russia. Excluding from the country Swift The financial-messaging system will make it difficult for them to collect their loan payments. Since the rubles are so low, these are already less effective. Direct hit management will be possible: ব্যাংক 121 billion, the stock of foreign bank loans for Russian firms and families has shrunk since 2014. But there are other costs. The investment-banking units of some large lenders may suffer losses in Russian securities, while private-banking businesses may suffer losses due to sanctions on Russian oligarchs. Foreign-run retail-banking branches may also close. And if sanctions increase, the risk of government default will increase.
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This article is published in the Finance and Economics section of the print edition under the title “Nyet interest”.