Number gave extra money banks for the month has doubled

Banks on 6 September during a one-week Deposit auction of the Bank of Russia placed RUB 190 billion of excess liquidity under 10.4 percent. All banks exceeded the limit (190 billion rubles) more than in 2,5 times, amounting to 483,8 billion rubles, follows from materials on the website of the Central Bank. The number of participants of auction, which is the third since the beginning of August, rose to 138. In the first auction, which took place in early August, there were 62 credit institution.

The Central Bank resumed its Deposit auctions August 9 — after half year break — due to the influx of liquidity into the banking sector via the budget channel in the beginning of the month. Deposit auctions allows to absorb excess liquidity from the banks and helps to keep Deposit rates near the key.

Budget factor reduces the policy effectiveness of the Central Bank to withdraw excess liquidity, say analysts at Raiffeisenbank. “We analyzed the impact of budget factor on the average cost of funding of the banking system from the time when the budget became scarce. According to our estimates, the budget channel (or rather the financing of the budget deficit at the expense of the Reserve Fund without the sale of currency on the open market) provided the reduction in funding of 7.3 and 7.55 p. p. the Potential for reduced funding by further reducing debt before the CBR is 1.2 p. p”, — analysts say in my review.

The number of participants and the amount of cash they wish to place, rising for the second auction in a row. The first Deposit auction of the Central Bank attracted from 62 banks 100 billion rubles under of 10.22% per annum (when the offer exceeded the limit by almost half). In the second, which took place on August 30 with the participation of 76 banks — 221 billion. under of 10.41% per annum with a limit of 280 billion rubles.

As noted earlier, chief economist, head of the center for macroeconomic analysis of Alfa-Bank Natalia Orlova, holding another Deposit auction — unexpected move, given that since the beginning of August, the Central Bank has attracted quite a lot of money, and at a very high rate. “Central Bank takes funds dearly, so they do not put a downward pressure on interest rates has not caused the acceleration of credit growth,” she explained .

“There is the fact of whether the gain of factor of excess liquidity, which thus [in the form of growth in the number of bidders and the amount of money that they want to place on deposits of the Central Bank] reveals itself,” — commented the results of the auction, chief economist at Eurasian development Bank Yaroslav Lissovolik. According to him, the results of the auction indicate that this factor has a place, despite the opinion of the Central Bank that the banking sector continues to experience a structural deficit of liquidity (at the end of August, the regulator had forecast that the deficit will continue until the end of the year. —).

Lissovolik believes that the problem with excess liquidity in the second half of this year, particularly in the fourth quarter, may be increased in the case of seasonal spending growth and improve the external environment for oil prices and stabilize (or even reduce) the outflow of capital. “These factors also can exacerbate the situation of excess liquidity. So the trend associated with sterilization, gain great importance”, — he concluded.