Page 70 - bne IntelliNews monthly country report Russia February 2024

(+12%) for non-performing loans (NPLs) and mortgage loans, driven by tightening macroprudential regulation. The share of macro-additions in RWA reached 4%.
The capital buffer (above the minimum regulatory requirements) increased to 7.2 trillion rubles in November.
BONDS: In November, the portfolio of debt securities increased by 0.3 trillion rubles (1.6%), evenly split between the growth of OFZ (Russian federal bonds) and corporate bonds. Additionally, there was a reduction in the negative revaluation of securities.
The Russian Ministry of Finance saw an uptick in issuance activity in November, placing OFZ bonds worth approximately 275 billion rubles, up from around 120 billion rubles in October. More than 90% of the issuance consisted of OFZ with a fixed coupon income, with the remainder allocated to inflation-protected OFZ. The primary demand for OFZ came from investment funds under trust management, acquiring around 70% of the total issuance, while banks accounted for only approximately 20% (around 60 billion rubles). There were no issuances of OFZ with variable coupon income (OFZ-PK), which are more popular among banks. Banks purchased an additional approximately 40 billion rubles of OFZ on the secondary market, predominantly OFZ-PK.
Companies continue to replace euro-denominated bonds with local instruments denominated in US dollars and other "toxic" currencies but settled in rubles. An estimated 290 billion rubles in ruble equivalent were replaced in November.
CBR MONEY: In November, the volume of government funds saw a slight increase of 0.1 trillion rubles (+1.0%), following a significant positive trend in October (+11.2%). The growth was driven solely by the funds of regional budgets, which increased by 0.2 trillion rubles (+8.4%). On the other hand, federal funds contracted by 0.1 trillion rubles (-0.7%) due to currency purchases on the domestic market as part of the implementation of the budget rule.
Loans from the Bank of Russia experienced a substantial growth of 547 billion rubles (+11.8%). Banks primarily sought loans secured by non-market assets as part of the primary mechanism for liquidity acquisition.
70 RUSSIA Country Report February 2024 www.intellinews.com