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.
On July 31, 2024, the Tender Committee of the National Financial Board held a meeting to select the auditor for the Bank of Russia’s 2024 annual financial statements.
When signing a long-term savings agreement, banks acting as agents of non-governmental pension funds will be obliged to provide a key information document (KID) to customers to notify them of the terms and risks of the agreement. These requirements are stipulated in the relevant draft ordinance of the Bank of Russia.
In the second quarter of 2024, individuals made nearly 2.3 billion transfers worth ₽13.4 trillion via the Faster Payments System (SBP). Compared to the first quarter of 2024, the number of transfers increased by 27%, and their total value rose by 47%.
The Bank of Russia has updated the concept of the national liquidity coverage ratio (LCR), incorporating feedback from market participants and findings from additional analysis conducted by the regulator.
Russian exporters and importers will be allowed to use cryptocurrencies in cross-border settlements under foreign trade agreements, but only within the experimental legal regime (ELR). The relevant draft law was adopted by the State Duma in the second and third readings.
Elvira Nabiullina, Governor of the Central Bank of Russia, addressed the Federation Council’s Financial Market Development Board on July 30, 2024. In her remarks, she highlighted key issues related to monetary policy and financial market development.
Engineers and humanitarians can be successful in asset management provided they have experience in securities transactions. Investors with degrees in economics and work experience at financial institutions earn the highest returns.
Foreign banks will be allowed to set up their branches in the Russian Federation, a shift from the current regulation which permits only subsidiary banks or representative offices. The draft law outlining the procedure for establishing branches was adopted by the State Duma in its second reading on July 30.
In July 2024, estimated inflation expected by households in one year rose to 12.4% from 11.9% a month earlier, according to InFOM’s survey. This increase was attributed to respondents without savings, while expectations of those with savings remained almost unchanged.