25 December 2009, Friday, 11:32

Deposit rates go down

author: Elvira Latypova

The recommended average deposit rate in Russian rubles on December 21, 2009, calculated by the Central Bank of Russia in accordance with the results of the monitoring at the biggest Russian banks, attracting the largest volume of natural persons’ deposits, makes 13,18%. In summer it was equal to 15,5%.

Some banks run serious risks in order to attract more deposits, setting the annual interest rate much higher than the average market one. The National Bank RB monitors the situation and sends its written recommendations to the banks if necessary.

“We observe severe competition in the market and in some cases this competition can be called unhealthy and we, as the main regulator, watch if the banks take surplus risks upon themselves“ – the chairman of the National Bank RB Rustem Mardanov said – “we mustn’t jeopardize our depositors and begin negotiating with such banks”.

Gradual lowering of the refinancing rate by the Central Bank of Russia was the signal to lowering of the deposit rates. In 2010 this tendency has to continue, the chairman of the National Bank RB believes.

“We expect further fall of the refinancing rate as the inflations comes down” – Rustem Mardanov says – “If the tendency of lowering of the inflation rates is continued in 2010, the Central Bank of Russia will undertake certain steps in this direction too”.

Lowering of the refinancing rate makes credits both for enterprises and population more available and, second, reduces the inflow of the speculative capital to Russia, quite able to undermine general economic situation in the country.