BOFIT Viikkokatsaus / BOFIT Weekly Review 2015/01
In order to enhance confidence of the general population in banks, the Duma fast-tracked and passed legislation on December 19 to raise the maximum deposit insurance coverage from 700,000 rubles (about €10,000) to 1.4 million rubles. An earlier bill proposal to raise the level of deposit insurance coverage to a million rubles was submitted to the Duma in mid-2013, but was scrubbed on opposition from the finance ministry.
Several efforts are being made to boost the stability of the banking sector. On December 19 the Duma approved a law on recapitalising banks with a total sum of 1 trillion rubles (about €15 billion). All banks would be eligible to receive capital support up to the amount equivalent to their base capital. The banks with highest funding priority are systematically important banks, those that have major regional importance and banks that hold large amounts of the general population’s deposits. The capital support will be financed through the sale of federal bonds (OFZ).
On December 23, the CBR introduced a new financing instrument that makes available to banks 28- and 365-day forex credits. The credits can be secured with euro or dollar bank loans to large export companies, and are intended to boost bank opportunities to help exporters service foreign debt.