Official says Russian banks are liquid

MOSCOW, Nov. 2 (UPI) -- A top Russian official said Sunday the country's banking industry has adequate cash to weather the current global financial maelstrom.

"At the current moment we understand that cash, which has been provided to the banking sector, is sufficient and the banking industry has enough liquidity to carry out both settlement operations and provide credits," RIA Novosti quoted First Deputy Prime Minister Igor Shuvalov as saying.

Like other nations, Russia has been socked by the worldwide credit crunch. The country's stock markets have lost about two-thirds of their value since their May high points, the Russian news agency reported.

The Russian government and Central Bank recently pumped billions of U.S. dollars into the domestic financial market to bolster its liquidity.

Shuvalov called on Russian banks to provide loans to major industries such as automakers, defense, construction and retail trade.

He also said the Kremlin will review duties on car imports as a way of helping domestic car makers, RIA Novosti said.

"Required adjustments will be made in customs and tariff regulation so that investors implementing projects and producing cars can sell their products in Russia. This means that we'll raise duties on similar cars that are produced abroad," Shuvalov said.