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.
Russia’s payment market is among the most technology-intensive globally. Its development has been driven by the needs of people and companies, as well as the level of digitalization in the domestic economy. The main objectives of advancing payment services in all countries are to make payment processing simple, convenient, and fast. The technologies addressing these objectives are the focus of the Bank of Russia’s analytical paper "Payment Digitalisation and Innovations in the Payment Market."
In its information letter to banks, the regulator advises them to choose the format for providing financial services based on the number of residents and their income levels.
A press conference will be held on June 7 at 17:00 following the Board of Directors' monetary policy meeting, according to an announcement by the Bank of Russia. Governor Elvira Nabiullina and Deputy Governor Alexey Zabotkin are scheduled to participate.
The May 2024 results of the monitoring of maximum interest rates on deposits in Russian rubles for the top ten credit institutions attracting the largest amount of household deposits are as follows:
On June 3, 2024, the Bank of Russia issued a 3-ruble silver commemorative coin to mark the 450th anniversary of the foundation of Ufa. This coin is part of the Cities series.
On 3 June 2024, the Bank of Russia issued new silver commemorative coins as part of its Historical Events series. The coins commemorate the 100th anniversaries of the foundation of the Republics of North Ossetia—Alania and Ingushetia.
The value of assets managed by management companies increased by 5.8% in the first quarter of 2024. Unit investment funds (UIFs) exhibited the highest growth in assets, maintaining 60% of the total assets under management.
The Bank of Russia’s spring session of online classes on financial literacy was viewed 3.2 million times, with participation from more than half of Russian schools (51%). In regions such as Tatarstan, the Chuvash Republic, Sevastopol, the Primorye Territory, and the Ryazan and Murmansk Regions, all schools participated without exception. Additionally, two-thirds of Russia’s technical schools and colleges watched the spring session.
The Bank of Russia will now require credit rating agencies (CRAs) to disclose credit ratings along with the assessment of stand-alone creditworthiness of rated entities. The central bank has published a draft ordinance aimed at ensuring its regulatory impact assessment.
The debt burden of clients of microfinance organizations (MFOs) has been decreasing. According to the 2024 Q1 results, the proportion of loans overdue for more than 90 days went down to figures seen in early 2022 and totaled 32%. This trend was partly due to measures taken by the Bank of Russia to reduce household debt burdens.
On May 29, 2024, the National Financial Board convened and approved Dmitry G. Dubynin as the sole executive body of the national payment card system operator.
In the first quarter of 2024, pension reserves of non-governmental pension funds (NPFs) expanded by 1.6% to ₽1.9 trillion. This growth was driven by returns on investment and the inflow of funds under non-governmental pension insurance agreements and into the long-term savings program launched at the beginning of the year.