The market of platform services, including investment and financial platforms and information systems where digital financial assets (DFAs) are issued, is becoming increasingly attractive to investors, especially given rising interest rates. The overall amount of transactions exceeded ₽282 billion as of the end of 2023 and 2024 Q1.
On June 17, 2024, the Bank of Russia revoked the banking license of Joint Stock Company Avtogradbank (JSC Avtogradbank), as per Order No. OD-947. The institution ranked 218th by assets in the Russian banking system.
The June 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:
From January 1, 2025, non-governmental pension funds (NPFs) will be required to identify and manage conflicts of interest. However, these funds will only be able to allow such conflicts if they do not violate clients' rights and clients have been informed about the conflict. These provisions are outlined in a Bank of Russia draft ordinance published for public consultation.
From June 13, 2024, the Bank of Russia will set the official US dollar/ruble and euro/ruble exchange rates based on reporting data from credit institutions and the results of interbank conversion transactions in the over-the-counter FX market as of 15:30 Moscow time on the same business day.
The Bank of Russia has decided against conducting trading sessions before 9:50 Moscow time in the MOEX FX, precious metals, and derivatives markets from June 14, 2024, until further notice.
The Bank of Russia has decided to suspend trading in Hong Kong dollars starting June 13. On Thursday, trading sessions in the MOEX FX and precious metals markets, as well as the derivatives market with settlements in foreign currencies other than the US dollar, euro, and Hong Kong dollar, will start at 9:50 Moscow time.
Due to the introduction of restrictive measures by the United States against the Moscow Exchange Group, on-exchange trading and settlements of deliverable instruments in US dollars and euros are suspended. However, trading in all other exchange segments and instruments in rubles and other currencies will be conducted as normal. US dollars and euros will still be traded in the over-the-counter market.
In May, the value of securities declined in the Russian stock and debt markets, while the ruble strengthened against foreign currencies in the foreign exchange market.
Recent data indicate that both nominal and real interest rates continued to increase in May. Lending activity remained high, as the tightening of price and non-price conditions did not yet fully affect the credit and deposit market. The annual growth rate of monetary aggregates was still above the values observed from 2017 to 2019.
On June 7, 2024, Bank of Russia Governor Elvira Nabiullina announced the decision to maintain the key rate at 16% per annum. This decision follows a period marked by a pause in the deceleration of current inflation and sustained high economic growth rates.
The Bank of Russia has announced adjustments to the market risk regulation for credit institutions. The primary change involves the exclusion of derivatives hedging bank balance sheet risks, such as interest rate risk, from the market risk assessment. This adjustment aims to alleviate pressure on banks' capital and promote the development of risk hedging practices.
On June 6, 2024, coinciding with the birth anniversary of Alexander Pushkin, the Bank of Russia issued a silver commemorative coin titled ‘The Tale of Tsar Saltan’. The poet drew inspiration for this fairy tale from Russian folklore, incorporating characters and images that have since influenced various artistic domains.
Amid the stabilization of the ruble exchange rate and a rise in stock prices, the number of active clients in the stock market began to grow in Q1 2024. On average, 3.8 million investors conducted transactions on the Moscow Exchange monthly, which was 0.2 million more than in the previous quarter.
Kirov, a historic Russian city known for its trade and handicraft industry, is celebrating its 650th anniversary. To commemorate this milestone, the Bank of Russia has issued a special 3-ruble silver coin as part of the Cities series. The coin was released on May 28, 2024.
A new law adopted by the State Duma on May 28, 2024, allows mortgage borrowers facing financial difficulties to independently sell their pledged property. This development aims to provide an alternative for borrowers who are unable to repay their loans.
The Bank of Russia has put forth a recommendation urging issuers to disclose more information during public offerings. This guidance emphasizes the need for companies to share details on the principles and approaches used in distributing securities among investors before applications are collected, as well as information about the actual receipt of assets post-sale.
In the first quarter of 2024, the Russian economy exceeded most growth forecasts, though it appears to have slowed slightly in April and May, according to preliminary data. Despite this growth, the supply of goods and services is not keeping pace with the rising aggregate demand driven by increasing incomes, lending, and public demand.