News from July 2024

Sherrod Brown emphasizes benefits of bipartisan infrastructure investments

WASHINGTON, D.C. – U.S. Senator Sherrod Brown (D-OH), Chairman of the Senate Committee on Banking, Housing, and Urban Affairs, delivered an opening statement at a hearing titled “Long-Term Economic Benefits and Impacts from Federal Infrastructure and Public Transportation Investment.”

Financial Services Republicans urge Fed to reconsider Basel III Endgame Proposal

The Chairman of the House Financial Services Committee, Patrick McHenry (NC-10), alongside all Committee Republicans, has called on Federal Reserve Chairman Jerome Powell to withdraw and re-propose the Basel III Endgame rulemaking in its entirety. The lawmakers argue that significant changes to the original proposal necessitate a complete re-proposal in accordance with the Administrative Procedure Act.

SBP transfers increase significantly in Q2 2024

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%.

Bank of Russia updates national liquidity coverage ratio concept

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.

Overdue debt in CCCs’ microloan portfolio declines: Q1 2024 results

As of the end of Q1 2024, the proportion of non-performing microloans overdue for 90 or more days dropped to 14.3%, marking a two-year low.

Russia allows cryptocurrency use in cross-border trade under new regulations

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.

Central Bank Governor addresses monetary policy at Federation Council meeting

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.

Bank of Russia explores correlation between education and investment returns

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 allowed to establish branches in Russia

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.

McHenry announces new staff director for Financial Services Committee

Today, the Chairman of the House Financial Services Committee, Patrick McHenry (NC-10), named Kim Betz as the new staff director for the Committee.

Bank of Russia detects nearly 3,500 illegal entities in first half of 2024

Nearly 3,500 illegal entities detected by Bank of Russia in 2024 H1

Household inflation expectations rise to 12.4% in July

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.

Bank of Russia details payment procedure for Belarusian Development Bank's Eurobonds

The Bank of Russia has outlined the procedure for payments on the Eurobonds of JSC Development Bank of the Republic of Belarus (ISIN XS1904731129 or US25161EAA91) to Russian investors. The issuer may fulfill its obligations in Belarusian rubles or buy back the Eurobonds, with payments bypassing foreign institutions.

Monitoring reveals stable deposit interest rates at major Russian banks in July

The July 2024 results of the monitoring of the maximum interest rates on deposits in Russian rubles of the top ten credit institutions attracting the largest amount of household deposits are as follows:

Bank of Russia raises key rate to 18% amid rising inflation

On July 26, 2024, Bank of Russia Governor Elvira Nabiullina announced a decision to raise the key rate to 18% per annum. This decision was influenced by several factors that have materialized, including rising underlying inflation, persistent consumer activity, an unchanged positive output gap in the economy with growing labor market tightness, and new proinflationary risks associated with sanctions.

Bank of Russia raises key interest rate by 200 basis points

On July 26, 2024, the Bank of Russia's Board of Directors decided to increase the key rate by 200 basis points to 18.00% per annum. Inflation has accelerated and is developing significantly above the Bank of Russia’s April forecast. Growth in domestic demand continues to outstrip the capabilities to expand the supply of goods and services. To reduce inflation, monetary policy needs further tightening. Returning inflation to the target requires considerably tighter monetary conditions than previously anticipated. The Bank of Russia will consider the necessity of further key...

Common Monetary Area countries to regularise electronic funds transfer payments

As of September 30, 2024, low-value electronic funds transfers (EFTs), debit, and credit payments made between Common Monetary Area (CMA) countries—Eswatini, Lesotho, Namibia, and South Africa—will be treated as cross-border transactions and subject to greater due diligence requirements.

Bank of Russia announces website maintenance on July 27

On July 27, 2024, the Bank of Russia will conduct maintenance on its website, which may result in operational delays.

Sherrod Brown urges thorough review of Capital One-Discover merger

WASHINGTON, D.C. – U.S. Senator Sherrod Brown (D-OH), Chairman of the Senate Committee on Banking, Housing, and Urban Affairs, has urged federal banking regulators to thoroughly evaluate all aspects of the proposed merger between Capital One and Discover. In a letter to Federal Reserve Vice Chair for Supervision Michael Barr and Acting Comptroller Michael Hsu, Brown emphasized that this transaction should prioritize families, households, and businesses deserving of a fair financial system. He called on regulators to investigate how the merging banks plan to lower costs for...

Senator Brown addresses national security threats from misuse of U.S. innovations

On July 25, 2024, U.S. Senator Sherrod Brown (D-OH), Chairman of the Senate Committee on Banking, Housing, and Urban Affairs, delivered an opening statement at a hearing titled “Advancing National Security through Export Controls, Investment Security, and the Defense Production.”