Following a public consultation, the Reserve Bank of Australia (RBA) has decided to increase the settlement activity threshold under the Financial Stability Standards for Securities Settlement Facilities (SSF Standards). This move aims to balance the risks posed by small firms to the financial system and the regulatory burden imposed on them. The review of the settlement activity threshold in the SSF Standards was initiated following the Payments System Board’s meeting in November 2023.
Business activity continued to grow in June, according to the Bank of Russia’s Business Climate Index. The index exceeded the 2024 Q1 average, approaching twelve-year highs despite a 10.4-point drop.
Most Russians preferred cashless payments in 2023, according to recent data. The most popular methods of these payments were bank card payments (75%), mobile and online bank payments (48%), and payments via the Faster Payment System (28%).
Current price growth substantially accelerated in May. Inflation was significantly fueled by the increase in prices for tourism and passenger transport services, which are characterized by elevated volatility. However, the rise in prices for underlying components of inflation sped up compared to April, surpassing the rates of 2023 Q4 on certain indicators. Annual inflation increased to 8.3%.
On June 19, 2024, the Federation Council approved a law aimed at reducing borrower risks by limiting variable interest rate loans to individuals and micro businesses. The law will take effect on September 1, 2024.
At the meeting of the Foreign Exchange Policy Advisory Board of Central (National) Banks of the Eurasian Economic Union (EAEU) Member States, which took place in Sochi, participants discussed specific aspects of the interaction between monetary policy and other state policies. The discussion particularly focused on approaches to harmonizing financial market legislation among EAEU member states.
The Bank of Russia recommends that financial institutions use their remote channels to provide services to people with disabilities, elderly individuals, and people with limited mobility. Additionally, these channels should be used to verify the powers of authorized persons acting on their behalf.
The Reserve Bank Board has announced its decision to maintain the cash rate target at 4.35 percent and the interest rate on Exchange Settlement balances at 4.25 percent.
In the first quarter of 2024, household funds increased by 3.8% amid growing incomes, high interest rates, and the capitalization of interest on deposits. This represents the highest first-quarter value recorded. The 2024 forecast for household funds was revised from an initial range of 8–13% to a new range of 14–19%.
The South African Reserve Bank (SARB) has announced revisions to its monetary policy implementation framework, effective June 18, 2024. The reformed framework allocates quotas for excess reserves to banks. Balances within these quotas will earn the policy rate, whereas balances exceeding the quotas will earn the repo rate minus 100 basis points.
The market of platform services, including investment and financial platforms and information systems where digital financial assets (DFAs) are issued, is becoming increasingly attractive to investors, especially given rising interest rates. The overall amount of transactions exceeded ₽282 billion as of the end of 2023 and 2024 Q1.
WASHINGTON, D.C. – U.S. Senator Sherrod Brown (D-OH), Chairman of the Senate Committee on Banking, Housing, and Urban Affairs, has called on the Federal Deposit Insurance Corporation (FDIC) and the Office of the Comptroller of the Currency (OCC) to ensure their updated bank merger policies adequately scrutinize mergers' effects on consumers and communities.
On June 17, 2024, the Bank of Russia revoked the banking license of Joint Stock Company Avtogradbank (JSC Avtogradbank), as per Order No. OD-947. The institution ranked 218th by assets in the Russian banking system.
The June 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:
From January 1, 2025, non-governmental pension funds (NPFs) will be required to identify and manage conflicts of interest. However, these funds will only be able to allow such conflicts if they do not violate clients' rights and clients have been informed about the conflict. These provisions are outlined in a Bank of Russia draft ordinance published for public consultation.
From June 13, 2024, the Bank of Russia will set the official US dollar/ruble and euro/ruble exchange rates based on reporting data from credit institutions and the results of interbank conversion transactions in the over-the-counter FX market as of 15:30 Moscow time on the same business day.
The House Committee on Appropriations is set to consider the Financial Services General Government (FSGG) appropriations legislation for fiscal year 2025 during a full committee markup today. The bill incorporates several priorities from Committee Republicans aimed at curbing financial regulators, restoring fiscal responsibility, and protecting Americans' financial privacy.
WASHINGTON, D.C. – U.S. Senator Sherrod Brown (D-OH), Chairman of the Senate Committee on Banking, Housing, and Urban Affairs, congratulated Christy Goldsmith Romero on her nomination to be Chair of the Board of Directors of the Federal Deposit Insurance Corporation (FDIC) and issued the following statement: