Page 92 - RusRPTJul21

In the context of a gradual economic recovery, including an increase in payments in industries, focused on consumer demand, the rate of restructuring loans to SMEs continues to decline. In May, loans were restructured in the amount of RUB8bn (vs April by RUB11bn). The restructuring of loans to the population remains at the level of RUB13bn.
8.1.5 Liquidity, NIMs & CARs
Securities: Investments in debt securities by banks in May increased by RUB283bn (1.7%), mainly into corporate bonds. OFZ volume purchased by Russian banks at auctions on the placement of OFZ, amounted to only about RUB80bn due to the reduction of the share the activity of the Ministry of Finance of Russia (the total amount of attracted funds is about RUB125bn), as well as the same decrease in the share of Russian banks in the total volume of OFZ purchases in the primary market - from 87% in April to 65% in May.
Liquidity: The total volume of ruble-denominated liquid assets of the sector (cash required to the Bank of Russia and non-pledged market collateral) in May increased by RUB0.5 trillion, up to RUB16.3 trillion.
Funds placed with the Bank of Russia grew mainly against the background of inflow of corporate and government funds to banks.
The volume of liquidity finds at a fairly comfortable level and covers a third of the total funds of clients.
In addition to liquid assets, banks can raise funds from the Bank Russia secured by non-marketable assets. As of May 31, 2021, the volume of such assets included in the “soft collateral” amounted to RUB4.9 trillion (about 10% of clients' ruble funds).
The volume of liquid assets in foreign currency of credit institutions increased by $2bn, to $50.6bn (mainly on correspondent accounts in non-resident banks). The total volume of foreign exchange liquidity is sufficient to cover the but 34% of foreign exchange funds of corporate clients, or 15% of all foreign exchange liabilities, which is a comfortable level.
8.1.7 Banks specific issues
Mortgage lending slowed down in May to about 2% (according to preliminary data) from 2.8% in April, which is probably due to holidays and non-working days.
The volume of dachas bought using the government subsidised preferential mortgage at 6.5% programme decreased compared to April (RUB100bn versus RUB132bn), but its share in the total volume of loans remains at the level about 25%.
92 RUSSIA Country Report July 2021 www.intellinews.com