Central bank to check banks with deposit rates higher than 2 pp

MOSCOW, Nov 15 (PRIME) -- Russia’s central bank will start paying close attention to banks that set deposit rates more than 2 percentage points higher than the average maximum interest rate of top-10 banks from November 27 compared to a 3.5 percentage points now, the regulator said in a statement on Wednesday.

“Taking into account changes in situation on the Russian financial market and as interest rates on the deposit market are falling consistently, starting from November 27, 2017 the banking oversight authority will pay special attention to cases of banks setting deposits rates in Russian rubles by more than 2 percentage points higher than the calculated average maximum interest rate of 10 credit institutions that attract the bulk of deposits of individuals,” the authority said.

The current maximum threshold of 3.5 percentage points was set on December 22, 2014. Still, interest rates on deposits set by the majority of Russian banks do not exceed the average maximum interest rate of top-10 banks by more than 2 percentage points, the regulator said.

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