News from September 2024

Suspicious transactions down by 27% in first half of 2024

The amount of cash-out transactions decreased by 25% to ₽27.8 billion in the first half of 2024, as calculated by the Bank of Russia.

Bank of Russia updates stress testing scenarios for pension funds

The Bank of Russia has updated its mandatory stress testing scenarios for non-governmental pension funds (NPFs).

South Africa’s net international investment position decreases by R372 billion in Q2 2024

South Africa's positive net international investment position (IIP) decreased from a revised R2 424 billion at the end of March 2024 to R2 052 billion at the end of June. The decrease in the positive net IIP in the second quarter of 2024 resulted from both a decrease in foreign assets and an increase in foreign liabilities.

McKinsey & Company announces surge in private credit assets to nearly $2 trillion

In a report published on September 24, McKinsey & Company announced that private credit assets have surged to almost $2 trillion. The analysis highlights the potential and risks associated with this growing asset class as it continues to evolve within the global financial system.

Pawnshop market sees growth in microloans amid higher collateral value

The microloan portfolio expanded by 13% from the beginning of 2024, amounting to ₽62.6 billion. Demand for microloans remained stable: in the first half of 2024, pawnshops concluded slightly more than 4 million contracts on average per quarter. The average microloan amount increased by 8% compared with the previous period and exceeded ₽17,000. Such dynamics were associated with a rise in the value of collateral, which was mainly represented by gold items.

Bank of Russia submits updated monetary policy guidelines to State Duma

The Bank of Russia has submitted its updated draft Monetary Policy Guidelines for 2025–2027 to the State Duma. This strategic document outlines the central bank's approaches to implementing monetary policy in the current economic environment. It also presents a baseline and three alternative macroeconomic scenarios for the next three years.

South African Reserve Bank imposes sanctions on Old Mutual Life Assurance

The South African Reserve Bank (SARB) has imposed administrative sanctions on Old Mutual Life Assurance Company (South Africa) Limited (OMLACSA). This action is due to OMLACSA's non-compliance with the provisions of the Financial Intelligence Centre Act.

Russian Journal examines regional inflation differences and forecasting improvements

The third issue of the scholarly quarterly Russian Journal of Money and Finance for 2024 has been published.

Nabiullina addresses banking sector's challenges and future plans at international forum

The XXI International Banking Forum recently featured a speech by Elvira Nabiullina, where she addressed several pressing issues in the banking sector. She began by discussing the overall situation in the industry, highlighting its contribution to economic development and investment processes in Russia. Despite challenges, she noted that "the banking sector itself also feels confident owing to a large capital cushion and profits."

Binance announces collaboration to combat scam operation in Indonesia

Binance announced its partnership with Indonesia’s Criminal Investigation Agency (Bareskrim) and Tokocrypto to disrupt a significant scam operation. The collaboration led to the identification of several suspects and the seizure of $200,000 in illicit funds.

Bank of Russia raises key rate amid economic slowdown concerns

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.

Reserve Bank releases 2024 assessment of ASX clearing and settlement facilities

The Reserve Bank of Australia has released its 2024 Assessment of the ASX Clearing and Settlement (CS) Facilities. This evaluation measures the performance of the ASX CS Facilities against the Bank's Financial Stability Standards (FSS).

Inflation expectations decrease slightly in September but remain elevated

In September 2024, one-year-ahead inflation expectations of households edged down to 12.5% from 12.9% a month earlier, as shown by the InFOM’s survey. Expectations decreased among respondents both with and without savings. All these measures markedly exceeded the 2024 H1 averages.

Bank of Russia reports September deposit rate trends

The September 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:

House subcommittee examines Basel III endgame amid regulatory concerns

The House Financial Services Subcommittee on Financial Institutions and Monetary Policy, chaired by Andy Barr (KY-06), is conducting a hearing titled "Regulatory Recipe for Economic Uncertainty: The Endless Basel Endgame and an Onslaught of Hurried Rulemaking Undertaken by the Administration."

Reserve Bank keeps cash rate unchanged amid persistent high inflation

The Reserve Bank Board has decided to keep the cash rate target unchanged at 4.35 percent and the interest rate on Exchange Settlement balances steady at 4.25 percent.

House Financial Services Committee holds oversight hearing on SEC

The House Financial Services Committee, chaired by Patrick McHenry (NC-10), is holding a hearing today to oversee the Securities and Exchange Commission (SEC). All five SEC Commissioners are testifying together before the Committee for the first time since 2019. This provides an opportunity to hear the diverse viewpoints of the full Commission.

National Financial Board discusses monetary policy and appoints new auditor

At its meeting on 23 September 2024, the National Financial Board (NFB) reviewed drafts of the Monetary Policy Guidelines and the Russian Financial Market Development Programme for 2025–2027.

Central bank addresses economic growth amid rising uncertainties

The Institute of International Finance and the Canadian Bankers Association hosted a forum on economic growth amid uncertainty, featuring a speech that addressed various global challenges. The speaker acknowledged the current state of uncertainty due to geopolitical tensions, technological disruptions, climate change impacts, political instability, and fiscal unpredictability.

Hearing on FHFA's political agenda postponed by House Financial Services Committee

The House Financial Services Committee has announced the postponement of a hearing initially scheduled for Thursday, September 26, 2024. The hearing was to be held by the Housing & Insurance Subcommittee and titled "Vanishing Independence: How FHFA’s Political Agenda Endangers Homeowners and Taxpayers."