(Adds detail, Siluanov comments)
MOSCOW, March 28 Russia's central bank wants
banks to use most of their profits to support capital levels, so
that they can increase lending, Governor Elvira Nabiullina said
Nabiullina also said growth had taken hold in a number of
sectors and real wages were rising as the country enters a new
"It's very important that in general the banking system has
recovered from the shocks of 2014-2015 in time for this moment,"
she told a meeting of the Association of Russian Banks.
"Banks have every possibility to develop their business and
Russia's economy is forecast to grow by up to 2 percent in
2017, after two years of economic contraction.
While banking sector profits are rising, loan growth remains
Nabiullina said banks' capital levels were comfortable for
now but it was a priority for the central bank to complete the
removal of weak banks from the market over the next two to three
Finance Minister Anton Siluanov told the meeting the
government had lost around 100 billion roubles ($1.75 billion)
in state funds in Russian banks that have collapsed over the
Siluanov said he supported the central bank's banking sector
cleanup and state funds should only be kept in reliable banks.
($1 = 57.0925 roubles)
(Reporting by Alexander Winning and Katya Golubkova, editing by