The requirements for the models that banks use to assess borrowers’ incomes when calculating their debt service-to-income ratios (DSTI) will change from 1 November 2024. The relevant amendments have been made to Bank of Russia Ordinance No. 6579-U.
The South African Reserve Bank (SARB), in collaboration with the Department of Basic Education (DBE), today announced the winners of the 2024 Monetary Policy Committee (MPC) Schools Challenge. This year, 12 schools from across the country were shortlisted as finalists. This reflects both an interest in, and maturity of, the competition.
In the second quarter of 2024, banks identified nearly 257,000 fraudulent transactions, marking a 14.9% decrease compared to the average over the previous four quarters.
The Bank of Russia suggests changing the structure of the microfinance market over the next three years by splitting up business and target financing into separate segments. Entities offering the most expensive microloans at over 100% per annum will retain the status of microfinance organizations. The prudential ratios are planned to be reviewed for each category of the organizations.
Russia's annual inflation averaged 9.13% in July, up from 8.59% in June. Price growth accelerated in 76 regions, with the highest increases observed in the North Caucasian Federal District and the lowest in the North-Western Federal District. A key factor contributing to this rise was the indexation of utility rates, which increased more than usual this year. Notably, these rates were not raised in July 2023, resulting in a low base of comparison.
House Financial Services Committee Chairman Patrick McHenry (NC-10) and six subcommittee chairmen have sent a letter to U.S. Treasury Secretary Janet Yellen in response to the Treasury’s Request for Information (RFI) on Artificial Intelligence (AI) in financial services. The lawmakers emphasize the significant potential AI holds for the sector and urge financial regulators to focus on its benefits to consumers as firms increasingly leverage AI.
The August 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:
The Bank of Russia has issued recommendations for creditors to support mortgagors whose homes were damaged or destroyed in the Belgorod, Bryansk, and Kursk Regions.
In August, the Bank of Russia's Business Climate Index fell to 7.0 points from 7.7 points in July, while still exceeding the 2023 average. This indicates a continuing expansion of economic activity, although at a slower pace than in the first half of 2024.
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.
South African Reserve Bank Governor Lesetja Kganyago delivered a public lecture at the University of the Free State on August 15, 2024. During his address, he highlighted the ongoing economic impact of the COVID-19 pandemic, which began nearly five years ago.
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 Chairman of the House Financial Services Committee, Patrick McHenry (NC-10), sent a comment letter to Consumer Financial Protection Bureau (CFPB) Director Rohit Chopra with Financial Services Committee Republicans in response to the CFPB’s Notice of Proposed Rulemaking (NPRM) regarding the agency’s proposal to change American credit and health care systems. Prior to the comment letter, Chairman McHenry raised concerns with the NPRM, which would prevent the consideration of medical debt when constructing credit reports.
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%.
The Canada Border Services Agency (CBSA) team has been awarded the Bank of Canada counterfeit deterrence award. The recipients, Darren Ouderkirk, Stéphane Legault, Philippe Sincennes, and Jacquie Gawlina, collaborated with the Bank of Canada and the Royal Canadian Mounted Police’s National Anti-Counterfeiting Bureau.
All Financial Services Committee Republicans, led by Chairman Patrick McHenry (NC-10), have sent a letter to Federal Deposit Insurance Corporation (FDIC) Chair Martin Gruenberg demanding his immediate resignation. Despite announcing his intent to resign, Chair Gruenberg continues to push partisan regulatory initiatives while failing to address widespread and entrenched misconduct at the agency.
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.