According to the senior economist of Russia's representation at World Bank, John Litvak, the institution does not exclude a possibility of banking crisis in Russia in the medium term. At the same time, the bank sees no immediate dangers to the economic and financial situation in the country.
The crisis could happen if crude oil prices fall down considerably. The other reasons are the crisis of trust, limited competition and market risks of the banks.
The World Bank's representative also added that the bank is pleased with banking sector development in Russia . He indicated the crucial role of the Central Bank of Russia as a stability factor. The World Bank predicts that inflation in 2006 not to exceed 10%, provided there are no major changes in the federal budget.
At the same time, the bank expects GDP growth to be slower in 2006 than in 2005, due to the slowdown in processing industries. The World Bank is a second institution, after the Institute of Transition Economy led by Yegor Gaidar, to warn about a possibility of banking crisis in Russia .