Page 90 - RusRPTDec21

8.1.5 Liquidity, NIMs & CARs
LIQUIDITY: In October, the volume of liquid assets (cash, claims on the Bank of Russia and non-pledged market collateral) slightly decreased by RUB0.2 trillion, to RUB15.0 trillion, which is a comfortable level sufficient to cover 30% of the total customer funds in rubles.
Banks can attract from the Bank of Russia on the security of non-marketable assets (loans that meet the requirements of the Bank of Russia) about RUB4.8 trillion more, sufficient to cover 10% of customer funds.
Against the background of the outflow of foreign currency funds of legal entities, the volume of liquid assets of credit organizations in foreign currency also slightly decreased by $0.8bn, to $50.3bn.
At the same time, coverage of clients' foreign currency and foreign exchange liabilities did not change (20% and 14%, respectively), as banks placed short-term foreign exchange funding from corporate clients in the interbank market.
BONDS: In October, for the first time since the beginning of the year, investments in debt securities decrease (down RUB207bn, or 1.2% m/m), including due to the redemption of one of the KOBR issues (of RUB189bn) and, in general, their less active placement amid a decrease in structural liquidity surplus.
The emission activity of the Ministry of Finance of Russia was also low - the total volume of OFZs placed at auctions amounted to about RUB54bn, of which traditionally, most (about 70%) were bought by Russian banks.
In total, in the fourth quarter of 2021, the Russian Ministry of Finance plans to place OFZs in the amount of about RUB500bn, so that the corresponding investments of banks are likely to increase in the remaining months of the year.
CAPITAL: The sector's balance sheet capital increased by RUB82bn, to RUB11.7 trillion, which is lower than the earned gains due to negative revaluation of securities valued at other aggregate income (down RUB143bn), which is not included in profit.
Reduced cost securities occurred mainly in OFZs against the backdrop of an immediate increase in the key rate by 75 bp, to 7.5%, as a result of which the fair value of long-term OFZs decreased by an estimated 0.8 percentage points.
Total capital adequacy ratio (Н1.0) in September remained at the level of 12.4%, mainly due to earned income, which offset the growth of risk-weighted assets.
Capital stock increased (1.2% m/m) and amounted to RUB6.2 trillion (about 10% of the loan portfolio, but it should be borne in mind that it is unevenly distributed among banks).
90 RUSSIA Country Report December 2021 www.intellinews.com