Russian Sberbank Lacks Cash to Meet Client Demand, Confirms CEO

(MOSCOW) – Russia’s largest banks are sounding the alarm over a severe liquidity crisis as a record sum of cash was withdrawn in a single month and bad debts spiral.

According to the Central Bank of the Russian Federation, Russians pulled a record breaking 600 billion rubles ($7.6 billion, £5.9 billion) from the banking system in July 2026. The volume of bad credits, loans that businesses and individuals cannot repay, has simultaneously surged to approximately three trillion rubles ($38 billion, £29.6 billion).

Sberbank, the country’s largest financial institution, has confirmed it lacks sufficient cash to meet client withdrawal demands. The bank’s CEO, German Gref, recently broke with Kremlin orthodoxy by stating his greatest wish was for the “special military operation” to end.

VTB, the second largest state owned bank, reported a catastrophic financial outlook. Its profits collapsed by 20 per cent in the first quarter and 34 per cent in the second quarter of 2026. The bank stated that bad credits have reached 14.5 per cent of its portfolio, a level that typically signals critical danger for a financial institution. The bank is preparing to dismiss 10 per cent of its workforce and close branches.

The crisis is being exacerbated by political panic. Russian deputies have openly discussed the need to confiscate citizen deposits to fund the war economy, accelerating the bank run. Analysts note the financial distress is being compounded by the collapse of major corporate clients, including the marketplace giant Wildberries, which lost an estimated 150 to 230 billion rubles ($1.9 billion to $2.9 billion, £1.5 billion to £2.3 billion) in value after seven of its logistics hubs were destroyed in a single week. Wildberries previously accounted for three per cent of Russia’s GDP and held significant liabilities with VTB.

Russian media are openly reporting the banking instability for the first time under the rule of Russian dictator Vladimir Putin, a move analysts suggest is a warning of an impending systemic collapse.