The estimate of inflation expected by Russians in a year rose to 12.9% in August 2024 from 12.4% a month earlier, according to InFOM’s survey. The rise was accounted for by respondents with savings. Inflation expectations of those without savings decreased but remained elevated.
The growth rate of the portfolio of loans to developers increased from 6% in Q1 2024 to 13% in Q2 2024, following a rapid increase in housing under construction. As a result, the total portfolio reached ₽7.4 trillion.
Authorised representatives of the Bank of Russia, acting in compliance with Article 76 of Federal Law No. 86-FZ, dated 10 July 2002, 'On the Central Bank of the Russian Federation (Bank of Russia)', were assigned to 87 credit institutions.
The Bank of Russia has recommended that insurance companies consider paying compensation to victims in the Belgorod, Bryansk, and Kursk regions. This proposal covers personal insurance contracts and real estate insurance contracts.
The August 2024 results of the monitoring of the maximum interest rates on deposits in Russian rubles of the top ten credit institutions attracting the largest amount of household deposits are as follows:
According to preliminary data, mortgage lending increased by 0.7% in July after a 3.1% rise in June. The Subsidised Mortgage programme ended in early June, but several loans were still granted under contracts concluded before July 1, 2024. The Family Mortgage programme was relaunched on July 11, 2024, under new conditions. It will take several months to accurately assess the impact of these amendments to government-subsidised programmes; therefore, it is too early to draw any conclusions.
The traffic accident report form that car drivers receive with their CMTPLI policies will now include a QR code. This code will link to the Public Services Portal, detailing the procedure for reporting a traffic accident using the European Accident Statement without involving the traffic police. It also offers users an option to download a mobile application for this purpose.
The requirements for the models that banks use to assess borrowers’ incomes when calculating their debt service-to-income ratios (DSTI) will change from 1 November 2024. The relevant amendments have been made to Bank of Russia Ordinance No. 6579-U.
In the second quarter of 2024, banks identified nearly 257,000 fraudulent transactions, marking a 14.9% decrease compared to the average over the previous four quarters.
The Bank of Russia suggests changing the structure of the microfinance market over the next three years by splitting up business and target financing into separate segments. Entities offering the most expensive microloans at over 100% per annum will retain the status of microfinance organizations. The prudential ratios are planned to be reviewed for each category of the organizations.
Russia's annual inflation averaged 9.13% in July, up from 8.59% in June. Price growth accelerated in 76 regions, with the highest increases observed in the North Caucasian Federal District and the lowest in the North-Western Federal District. A key factor contributing to this rise was the indexation of utility rates, which increased more than usual this year. Notably, these rates were not raised in July 2023, resulting in a low base of comparison.
The August 2024 results of the monitoring of the maximum interest rates on deposits in Russian rubles for the top ten credit institutions attracting the largest amount of household deposits are as follows:
The Bank of Russia has issued recommendations for creditors to support mortgagors whose homes were damaged or destroyed in the Belgorod, Bryansk, and Kursk Regions.
In August, the Bank of Russia's Business Climate Index fell to 7.0 points from 7.7 points in July, while still exceeding the 2023 average. This indicates a continuing expansion of economic activity, although at a slower pace than in the first half of 2024.
In the second quarter of 2024, retail investors showed a preference for opening type 3 individual investment accounts (IIAs) while closing older IIAs less frequently. This trend coincided with an increased interest in the new product, resulting in a net inflow of funds into brokerage IIAs surpassing the outflow from these accounts.
Pawnshops are required to return any surplus from the sale of unclaimed items that exceed the debt on a microloan. The Bank of Russia has identified that some pawnshops are not informing customers about the sale of their properties and the funds they can receive. The regulator advises that pawnshops notify borrowers of this possibility within 30 calendar days after the sale.
The Bank of Russia conducted a survey and analyzed the current sustainability regulation in the member states of the Eurasian Council of Central (National) Banks.
In July, seasonally adjusted current inflation was higher than in June, primarily due to the higher-than-usual indexation of utility tariffs. The growth in prices for petroleum products also accelerated, while fruit and vegetable prices decreased at a much slower pace than is typical for July. Annual inflation rose to 9.1%.
By its Order No. OD-1290, dated August 13, 2024, the Bank of Russia cancelled the banking licence of American Express Bank, Limited Liability Company (American Express Bank LLC), Registration No. 3460, Moscow. The credit institution ranked 300th by assets in the Russian banking system.