Page 85 - bneIntelliNews monthly country report Russia May 2024

8.1.2 Loans
Banks Continue Credit Expansion, Utilizing Non-Market Collateral and Unsecured Deposits
Banks are currently not restricting their credit growth and are leveraging funds against non-market collateral from the Bank of Russia and unsecured deposits from the Federal Treasury to improve their net stable funding ratio (NSFR).
For instance, banks have attracted 1.7 trillion rubles in loans from the Bank of Russia secured by non-market collateral. Additionally, they replaced 0.9 trillion rubles in repo from the Federal Treasury with unsecured deposits, freeing up a significant amount of liquid assets. While this positively impacts liquidity, it does not constitute a significant structural improvement.
As a result, ruble-denominated liquid assets (cash, claims on the Bank of Russia, and unencumbered market collateral) across the sector increased substantially by 2.6 trillion rubles (+14.6%), reaching 20.6 trillion rubles. This increase is attributed to placements with the Bank of Russia (+1.6 trillion rubles) and unencumbered market collateral (+1.0 trillion rubles). Coverage of all ruble funds from clients increased to 22.5% from 19.6% in February. Coverage of funds from individuals remains comfortable at 48%.
The proportion of banks (by assets) with coverage of client funds by liquid assets below 20% decreased to 62% (from approximately 72% in February). However, the share of banks with the total amount of liquid assets and available non-market collateral below 20% of client funds amounted to a significant 14% (as of March 1, 2024, it was 20%).
85 RUSSIA Country Report May 2024 www.intellinews.com