Corporate lending in April showed a notable increase, with growth recorded at 1.9%, slightly higher than the 1.8% observed in March. Developers contributed significantly to this rise, accounting for about one-third of the total increase. Additionally, loans were extended to companies across various sectors to complete ongoing investment projects and fulfill state contracts.
The Bank of Russia has announced plans to align the criteria for protecting retail investors in both the stock market and marketplaces. A new threshold for transactions involving complex financial instruments will be set at ₽6 million without requiring testing. This threshold is proposed to increase to ₽12 million in 2025 and further to ₽24 million in 2026. The same threshold will apply for granting qualified investor status based on income qualifications, according to a draft ordinance from the regulator.
In the first quarter of 2024, banks thwarted nearly 13.9 million attempts by cybercriminals to steal funds from clients, as reported in the Review of Reporting on Information Security Incidents Related to Funds Transfers. This achievement is attributed to credit institutions' ongoing efforts to enhance their anti-fraud systems and improve business processes ahead of new legislation aimed at countering cyber fraud.
In May, the Bank of Russia's Business Climate Index (BCI) rose to 11.1 points from 10.7 in April, nearing its highest levels in the past 12 years. Business activity continues to grow intensively, with businesses reporting higher estimates of current demand for products and output compared to April. However, expectations for these indicators over the next three months have slightly decreased.
Annual inflation in Russia increased by an average of 0.12 percentage points to reach 7.84% in April, according to recent data. The Volga and Siberian Federal Districts experienced the most significant acceleration in price growth, while the Southern Federal District saw a slowdown.
The Bank of Russia has announced new macroprudential limits (MPLs) for unsecured loans and microloans for the third quarter of 2024. These limits are designed to restrict lending to borrowers with high debt service-to-income (DSTI) ratios and extended loan maturities, aiming to reduce household over-indebtedness.
The Bank of Russia presented its Financial Stability Review for the period of Q4 2023 to Q1 2024, highlighting the resilience of the Russian economy amidst high interest rates and ongoing sanctions. Filipp Gabunia addressed key vulnerabilities in the financial sector, emphasizing that while businesses are showing strong growth and lending is increasing, certain risks persist.
Russian manufacturers have shown improved profitability and better debt service-to-income ratios, despite facing increased sanctions pressure. This positive trend is attributed to a recovery in sales.
Hackers are increasingly targeting vulnerabilities in companies' software and IT solution suppliers to financial institutions, according to a review by the Bank of Russia. The report analyzes cybercriminal activities throughout 2023.
In April, consumer price growth increased following a significant slowdown in March, though it remained well below the peaks seen in autumn 2023. Annual inflation rose to 7.8%.
The Bank of Russia has released the results of its May 2024 monitoring of maximum interest rates on deposits in Russian rubles at the top ten credit institutions. The findings show that for both the first and second ten days of May, the maximum interest rate was 14.95%.
In May 2024, households' inflation expectations for the coming year increased to 11.7% from 11.0% in April, according to a survey by InFOM. This rise was attributed to growing expectations among respondents without savings, while those with savings maintained their inflation expectations at a consistent level for the third consecutive month.
The Bank of Russia's report on the application of artificial intelligence in the financial market has received support from various market participants. The discussion focused on the potential uses and regulatory principles for this technology.
Banks are now prohibited from imposing limits on the amount or number of free daily transfers between an individual's accounts held at different banks. According to the law, these transfers should not exceed ₽30 million and can be conducted without any fees. The regulator has communicated these clarifications to credit institutions.
The number of individual investment accounts (IIAs) in Russia saw a decline from 6.0 million to 5.9 million during the first quarter of 2024. This decrease impacted both brokerage and trust management accounts.
Deputy Governor of the Bank of Russia, Philipp Gabunia, and Director of the Bank of Russia’s Financial Stability Department, Elizaveta Danilova, are scheduled to present the Financial Stability Review. The event is set for May 24 at 14:30.
Many issuers currently limit disclosures due to sanction risks, creating information asymmetry in the public capital market. This situation leaves investors without essential information for making informed decisions.
Over the first quarter of 2024, non-governmental pension funds (NPFs) reported weighted average returns of 9.7% per annum on pension savings and 7.5% per annum on pension reserves.
The Bank of Russia has issued a new edition of the Banking Regulation Review, highlighting several regulatory changes introduced in 2024 to improve liquidity management. Since the beginning of the year, the regulator has made significant adjustments.
The Coin Week campaign is set to begin on May 20 and will continue until June 2. During this period, individuals can exchange coins for banknotes or have the amount credited to their accounts without incurring any fees.