Central Bank took the banks 100 billion rubles of excess liquidity


On 9 August the Bank of Russia held Deposit auction, through which attracted the banks 100 billion rubles, is spoken in the message of the Central Bank. The weighted average rate on attraction made up of 10.22%, the Deposit period is a week. The auction was attended by 62 the Bank, and proposals from their party exceeded the limit of the Central Bank (100 billion rubles) is almost twice, amounting to 187 billion rubles, the Central Bank offered to banks this tool due to the influx of liquidity into the banking sector via the budget channel in early August.

Exceeding the limit of two times not very significant, said the chief economist of consulting company “PF Capital” Evgenie Nadorshin. According to him, the demand for this tool in General is associated with excess liquidity in banks — they lend to non-financial sector is very sluggish, the list of counterparties in the interbank market the main parties are still limited, and most likely within him comfortable credit limits many selected. “It is possible to guess at the rates on the interbank market, which on average trades at the end of June are sometimes below even 10%. The proposal of the Central Bank for them — salvation,” the economist said.

The Central Bank, using the Deposit auction for one week period for the first time in a year and a half, will conduct a test of increasing liquidity, says chief economist at Alfa Bank Natalia Orlova. The demand for this tool is now provided that will allow the Bank of Russia to continue to conduct such auctions, says Orlova. Experts do not exclude that the Central Bank can increase the limits. “However, we must remember that the Finance Ministry is now likely holding back spending because of this locally excess liquidity could be reduced with the beginning of tax payments”, — says Nadorshin.

Deposit auctions are a fairly flexible tool, it can be sterilized like 100 billion, and greater amount, said the chief economist of “Renaissance Capital” Oleg Kuzmin. While the Deposit auctions allow money market rates close to the key rate.

Another instrument to absorb liquidity may be the issue of bonds by the Bank of Russia, about what the regulator said in early June. However, due to the fact that the budget will need to increase borrowing, issuing OFZ, which will compete with the bonds of the Central Bank, most likely, will stop at Deposit auctions, says Orlov.

In General, the list of tools at the Central Bank to regulate the volume of excess liquidity, banks have a wide. It may be, and Deposit auctions, and the issuance of bonds by the Central Bank, and increasing reserve requirements, reminiscent of Kuzmin. In a press-service of the Central Bank stressed that until the end of 2016, it is possible to conduct weekly auctions like accommodation, and the provision of liquidity depending on the needs of the banking sector.