Page 97 - RusRPTMay21

The total volume of foreign exchange liquidity is sufficient to cover about 36% of foreign exchange funds of corporate clients or 16% of all foreign exchange liabilities, which is a comfortable level, according to the CBR.
The sector's balance sheet capital in March increased by RUB160bn, to RUB10.9 trillion, which is lower than the earned profit due to negative revaluation of securities down RUB41bn.
The aggregate capital adequacy ratio in March (H1.0) increased by 0.1%pp, to 12.6%, mainly due to the profits earned by banks and attracting subordinated credits.
The capital stock grew to RUB6.0 trillion, or about 10% of the loan portfolio, but it should be borne in mind that it is unevenly distributed among banks.
8.1.7 Banks specific issues
As of March 31, 2021, Russia has 398 credit organisations operating,
including 357 banks whose share in the assets of the banking sector, taking into account their subsidiaries, is more than 75%. The share of other large credit institutions from the top 100 is about 20% of the sector's assets.
During March 2021, the licenses of six banks were revoked. The aggregate share of these six banks is less than 0.1% of the sector's assets. Also during this period there was a reorganization in the form of a merger of one credit organisation with a 0.1% share in the sector's assets.
In March, banks increased their investment in bonds by RUB0.6 trillion up 4.0% y/y. Banks mainly bought OFZ: out of RUB520bn placed by the Ministry of Finance of Russia, banks acquired about RUB450bn (more than 80%). More than 90% of the purchased securities fell on OFZs with a constant coupon income (OFZ-PD). In addition, banks' investments in the CBR coupon bonds was up about RUB100bn.
The government has extended the programme of subsidised family mortgages to individual housing at a rate of 6%. Qualifying families are those that have a second or subsequent child between 1 January 2018 and the end of 2022. The participation parameters include the construction contract and a 15% down payment, while the mortgage is capped at RUB12mn for the Moscow and St Petersburg metropolitan areas, and RUB6mn for other regions. Individual housing is an important driver of the overall completions, accounting for 40mn sqm and 48% of the total in 2020. The sector has faced headwinds from the lower infrastructure in remote areas and the lesser availability of mortgages (1% of the portfolio, according to the Ministry of Construction) due to higher credit risks and lower collateral liquidity. The incremental uplift in completions due to the programme being extended is 2.8mn sqm annually, according to the National Agency for
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