The tightening of regulations the Central Bank will cost the banks of half a trillion rubles


The Bank of Russia from August 1, will increase the standards of provisions for liabilities in rubles and foreign currency, and 75 b.p. said in a press release of the Central Bank, published on Monday, June 27. C August 1, 2016, the standards of provisions for liabilities will be from 5 to 7%.

This will partially absorb the influx of liquidity into the banking system, which arises from the deficit financing of the Federal budget at the expense of the Reserve Fund, the regulator explains in its press release. In addition, the raising of standards will reduce growth of foreign currency liabilities in the structure of Bank liabilities, the Central Bank adds.

A new decision of the Bank of Russia will cost the banking system about 400 billion rubles of additional deductions in Fund of obligatory reservation, said in comments released by the press service of Sberbank. “Such a sharp increase in deductions, of course, will limit the ability of banks to increase lending and will lead to significant pressure on rates to attract both in rubles and in foreign currency”, — said the press service of the state Bank. As a result, banks may raise lending rates and the profitability of the banking sector and the capital requirement will decrease, says the commentary.

The Central Bank in April have raised the threshold of mandatory reserves on liabilities in foreign currency, except for obligations to natural persons, by 1%. the Decision was aimed at slowing growth of foreign currency liabilities in the structure of liabilities of credit institutions, noted the regulator.

“Based on past decisions, the increase in deductions in Fund of obligatory reservation will amount to almost 600 billion rubles”, — says the press service of Sberbank.

The rate of compulsory reserves set by the Bank of Russia the share of obligations for borrowed funds, which banks must keep in reserve, either in the form of a Deposit in the Central Bank or as cash in their own vaults.