Page 65 - bne IntelliNews Country Report: Russia Dec17

media to curb information attacks on banks.
With a shrinking number of local bank branch offices and fewer ATMs, households are turning to netbanking services. A recent Central Bank of Russia survey found that over a third of the adult population uses an online banking service or a mobile banking app. This share has clearly increased over the past two years. The survey also reviewed the wider use of banking services. Nearly 80 % of Russian adults have at least one bank account and about 45 % actively use at least one account. Many Russians have several bank accounts. Private individuals together had over 544 million bank accounts at the start of the year (about 4.6 accounts per capita). The use of debit and credit cards has also expanded rapidly. About half of adults have some sort of payment card, and in addition to this about 30 % of Russians have a bank card related solely to wage payments. Despite rising household indebtedness, only about a third of the population has borrowed from a bank or other credit institution. Bank customers are typically middle-class urban-dwellers, while the customer base for the microcredit sector tends to be low-income individuals.
The Central Bank of Russia (CBR) prepared regulations that will prevent local lenders from using dubious schemes for boosting their capital , the regulator said on its web site on November 7. From now on, lenders will have to present proof of any subordinated instruments, non-repayable funding and property, included into their capital. For instance, to add real estate to its capital, a lender will have to register property rights for it.
Sberbank has dropped its lowest mortgage rate by 0.3% to 8.6%-9.7% per annum as falling Central Bank of Russia (CBR) rates make borrowing in Russia increasingly affordable. This rate is well below the 12% rate above which the government was offering subsidies to encourage Russians to buy their homes and also to bolster the flagging banking sector last year. Mortgage lending has become one of the most profitable businesses for banks. The CBR cut its overnight monetary policy rate to 8.25% last month in the latest of run of cuts and as inflation dropped to a new historic low of only 2.7% at the start of November – well below the 4% target rate for this year -- the regulator may cut rates again at its November meeting. However, restrictions apply to Sberbank’s new low rates and are only available for apartments selected on the "DomKlik" portal that is run by Sberbank. The promotion applies to apartments marked with the "Online Approval" icon, which are properties the bank has inspected itself. Even without the promotions and discounts mortgage rates are running at an average of 9.4%, which is still well down from last year. Sberbank is the largest player in the mortgage market with more than a 50% market share.
The Bank of Russia plans to introduce special requirements for foreign money transfer systems. According to Interfax, this is stated in the presentation of the director of the national payment system department of the Central Bank Alla Bakina for the National Payment Forum. It is about amendments to the law "On the National Payment System". The Central Bank wants to oblige foreign funds transfer systems to have an authorized organization in Russia and to carry out activities only through Russian banks. Also, for them, a notification procedure for activities may be introduced. They will also have to ensure the availability of the system rules in Russian and the protection of information when transferring funds, follows from the presentation.
65 RUSSIA Country Report December 2017 www.intellinews.com