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.
Residents of the Kursk, Bryansk, and Belgorod regions who have been evacuated or have lost property due to recent events are entitled to apply for a deferral of payments under loan (microloan) agreements for up to six months. This information was detailed in an information letter from the Bank of Russia.
The Bank of Russia has updated the requirements for claims under loan agreements where the principal is denominated in foreign currency (hereinafter, foreign currency loan agreements) for these claims to be accepted as collateral for Bank of Russia loans.
The Bank of Russia has highlighted key aspects of managing individual investment accounts (IIAs) for professional market participants. As of the beginning of 2024, only type 3 IIAs can be opened without limiting investment amounts and for a period ranging from five to ten years, depending on the year the agreement is signed. Type 1 and type 2 IIAs opened before January 1, 2024, will continue under their original terms. However, it is prohibited to hold both old- and new-type accounts simultaneously.
The fluctuations of the ruble against major foreign currencies were moderate in July. By the end of the month, the exchange rate slightly declined. Foreign exchange spreads contracted to levels seen between January and May 2024.
On August 9, 2024, the Bank of Russia issued new 2-ruble silver commemorative coins as part of the Red Data Book series. The new coins feature three distinct designs: Siberian Grouse, Marbled Polecat, and Wrinkled Ground Beetle.
A new law aimed at eliminating loopholes for pseudo-investment schemes and financial pyramids has come into effect. The legislation mandates that only companies supervised by the Bank of Russia can publicly raise investments from individuals. This includes banks, non-bank financial institutions such as brokers and management companies, and other intermediaries involved in investment raising.
Nominal interest rates increased significantly in most financial market segments in July. This tightening effect on monetary conditions was partially offset by a rise in households’ and businesses’ inflation expectations.
The publication covers the main aspects of the discussion about the economic situation and inflation, monetary and external conditions, and alternatives to the key rate decision.
The regulator has identified that some credit institutions, acting as agents of professional securities market participants, are registering this activity as information and advisory services instead of concluding an agency agreement. In practice, clients sign a brokerage or trust management agreement in a bank office remotely. Additionally, banks assist future investors in downloading a broker’s or trustee’s mobile application.
The Bank of Russia has clarified that the key rate may be used as a money market benchmark for determining the criteria of structured products available to a wide range of investors. It may be used along with RUONIA (Ruble Overnight Index Average) and RUONIA Averages.
The July 2024 results of the monitoring of the maximum interest rates on deposits in Russian rubles at the top ten credit institutions attracting the largest amount of household deposits are as follows:
The list of criteria for classifying banks as important in the payment services market will be expanded to include two additional criteria related to banks' systemic importance and the amount of transactions conducted through the Faster Payments System (SBP). These changes are provided for by the Bank of Russia’s draft ordinance.
On July 26, 2024, the Bank of Russia Board of Directors decided to extend the powers of Svetlana Maximova as the Financial Consumer Ombudsman in Insurance, Microfinance, Credit Cooperation, and Credit Institutions’ Operations.
Customers from rural areas, people with disabilities, and elderly individuals have increasingly turned to digital channels for financial transactions, according to a survey by the Bank of Russia.