Page 88 - RusRPTSept21

8.1.5 Liquidity, NIMs & CARs
The Central Bank of Russia (CBR) released a report on August 12 on banking sector liquidity, its first major analysis since the July key rate hike, BMB Russia reports.
Among its conclusions are that the key rate hike did not significantly affect the number of loans being issued. In fact, banks issued RUB1.17 trillion ($16bn) in loans last month, on top of the RUB24 trillion ($327.3bn) already owed by Russians as of July 1.
At the beginning of July, the CBR’s increase of macroprudential surcharges on unsecured loans took effect, with another increase on consumer loans planned for October 1 -- both moves intended to reduce banks’ ability to profit off of unsecured loans. An increase in deposits is also expected as deposit rates have returned to pre-pandemic levels, suggesting positive conditions for bank liquidity.
Investments in debt securities remained practically unchanged (RUB3bn)
Small. The growth of investments in OFZs was offset by a decrease in the corporate bond portfolio. The emission activity of the Ministry of Finance of Russia remains low (probably, this is due to the budget surplus and a significant amount of previously attracted funds) - the total volume OFZs placed at auctions amounted to about RUB154bn, about 56% of which (RUB85bn) were bought by Russian banks, which is comparable to the June level.
In July, the volume of liquid assets13 (cash, claims on the Bank of Russia and non-pledged market provision) increased slightly - to RUB15.4 trillion, which is a comfortable level, sufficient to cover 32% of total customer funds in rubles. About RUB4.6 trillion more, sufficient to cover 9% of customer funds, banks can borrow from the Bank of Russia secured by non-marketable assets (loans corresponding to requirements of the Bank of Russia).
The volume of liquid assets of credit institutions in foreign currency increased by $1.3bn to $46.6bn, mainly through correspondent accounts with non-resident banks. This is an adequate level to cover about 20% of foreign exchange customer funds, or 14% of all foreign exchange liabilities.
88 RUSSIA Country Report September 2021 www.intellinews.com