MOSCOW, February 20. The Bank of Russia has approved a number of systemically important banks credit lines amounting to about 600 billion rubles to meet the requirement for short-term liquidity ratio (LCR), which entered into force in January this year. About this stated the head of the CBR Elvira Nabiullina.
The banking system of the Russian Federation has lost in 2015, almost one hundred banks
“Several systemically important banks asked for an irrevocable credit line, we granted requests totaling about 600 billion rubles. And we will be ready to consider the granting of credit lines and other banks, if they turn to us”, – she said in an interview with Reuters. The list of banks who will provide a credit line is not specified.
The Bank of Russia has set 1 January 2016 the requirement for short-term liquidity (Basel III), developed in accordance with the documents of the Basel Committee on banking supervision (BCBS) at the minimum allowable numeric value of 70% with a consequent increase by 10 percentage points annually until reaching 100% from 1 January 2019.
The requirement for compliance with the requirement for short-term liquidity apply to systemically important banks on a consolidated basis. These credit institutions include Sberbank, VTB, Gazprombank, UniCreditBank, Alfa-Bank, Bank “FC OTKRITIE”, ROSBANK, Promsvyazbank, Raiffeisenbank, Russian agricultural Bank.
On The Web
The Central Bank of the Russian Federation may take under the supervision of the VEB, if that will become a commercial Bank, said Nabiullina.
“Discusses the fate of the EBV, what will be the new model of its functioning as a development institution. Depending on whether this Institute has the functions of ordinary commercial banks, will be taken and the decision on banking licence. In my opinion, if VEB will have all the rights and powers of a commercial Bank, it should properly be governed by and nazirites”, – said Nabiullina.
Source: VEB Chairman Vladimir Dmitriev said that he was leaving his post
At the moment VEB has the status of a state Corporation and not subject to supervision by the Bank of Russia.
Nabiullina also said that the discussion on the further development of the banking assets of Vnesheconombank (Bank Globex and Svyaz-Bank – approx. ed.) and its debt to the Central Bank.
“We continue to discuss with VEB the fate of these two banks. In my opinion, it would be proper to give them the DIA. Also discusses the fate of the money that the web needs us. Possible option for partial conversion into a subordinated loan, and other options – they are still in the process of discussion”, – said Nabiullina.
In 2015, the Bank of Russia issued to the web 27 billion rubles of its profits to support the banking system. It was assumed that these funds will be used for recapitalization of the Bank Globex and Svyaz-Bank.
“The amount of funds to support Sviaz-Bank and Globex during transmission of the ASV can be allocated from those funds that were given to VEB. It all depends on the nature of the decision”, – said Nabiullina.
The tools for response in the event of a fall in oil prices
The Central Bank of the Russian Federation today has enough tools in place to quickly react to the situation on the financial market in case of a fall in oil prices below current levels, said Elvira Nabiullina.
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© Dmitry Astakhov/press service of the government of the Russian Federation/TASS
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“We think of the tools that we now have enough to respond to changing situations, even in the face of falling prices below current levels. This interest rate, and the ability to increase the volume of foreign exchange renancing Opera ons, and in case of threats to financial stability, we can carry out currency interventions on the market,” she listed.
At the end of January Nabiullina also said that the Central Bank will be proactive to prevent threats to financial stability.
As we also learned in January, Moscow exchange has developed a Toolkit for introducing discrete auctions in the currency market for example the stock market. As expected, such a mechanism in case of emergency jumps of the ruble can prevent too sudden weakening or strengthening. However, according to the first Deputy Chairman of the Central Bank Dmitry Tulin, until the need for such a tool no.
The Board of Directors of the Bank of Russia will hold the next meeting on the key rate of 18 March, the results of which will be published updated macroeconomic forecast of the regulator.