The Central Bank of Russia published its banking sector development update for March 2026, showing corporate lending (including bonds) rising 0.4% and retail lending accelerating, with outstanding mortgages up 0.3% and the consumer loan portfolio expanding 0.4% after a February contraction. The banking sector earned RUB 448 billion in profit, up 14% month on month, with results driven by non-operating (volatile) income. Corporate lending growth slowed versus February (0.6%) as advance payments under government contracts reduced contractors’ borrowing needs. Government-subsidised mortgages accounted for nearly 60% of total mortgage disbursements, unchanged from a month earlier. In consumer lending, cash loans continued to decrease while demand for credit cards remained high. Household funds held with banks were broadly flat, edging down 0.01% after 1.9% growth in February, partly reflecting a shift by retail investors into alternative instruments, while legal entities’ funds fell 3.3% after a February increase, largely linked to tax payments made in early March, including taxes for 2025.