Banks in Russia have begun closing branches en masse
In the first quarter of 2026, Russian banks significantly reduced their branch networks—483 branches were closed, which is 2.6 times more than during the same period last year.
This is evidenced by data from the Central Bank of Russia.
As of the end of March, the number of bank branches in the country had fallen to 21,870. By comparison, 185 branches were closed in the first quarter of 2025.
Experts attribute this trend to several key factors. First and foremost is the active shift of customers toward online banking, which reduces the need for physical branches. At the same time, maintaining branches remains expensive—in Moscow, costs per branch can range from 2 to 5 million rubles per month.
Other reasons cited include technological advancements, particularly the use of artificial intelligence, as well as bank mergers and acquisitions. In such cases, financial institutions close duplicate branches to optimize costs.
At the same time, reducing the branch network could negatively impact the accessibility of banking services, especially for customers who require in-person assistance—for example, when unblocking accounts or resolving complex financial issues.
Experts also note that internet connectivity issues in certain regions may hinder further branch closures, as online services cannot always fully replace traditional in-person service in those areas.
As a reminder, Russia is seeing a deterioration in the economic situation and a rise in the risk of loan defaults.
After three years of unexpected economic growth, Russia is facing a sudden slowdown—war costs, inflation, and falling oil prices have begun to weigh on an economy that until recently seemed resilient to sanctions.
Retail lending in Russia has fallen to a six-year low.
