Banks have stopped investing in the securities of the Central Bank of the Russian Federation

Investments of credit organizations into securities of the Bank of Russia collapsed last month at 36.8 per cent and by 1 July amounted to 701 billion rubles, which was the lowest level since March 2018, follows from the materials of the CBR.

At the same time investments began to decrease in February this year — the beginning of the month the banks held the bonds of the Russian regulator of 2.05 trillion rubles.

“the Decline in investments of Russian banks in coupon bonds of Bank of Russia due to the falling of their yield after the key rate, which in February 2020, the Central Bank decreased three times from 6.25% to 4.5% in June,” — said RIA “Novosti” associate Director on Bank ratings Agency “Expert RA” Maria zinina.

we will Remind, last week it became known that the net profit of Russian banks last month amounted to 70 billion rubles. After the failure in may the financial result of the sector has improved and reached at the end of II quarter 102,56 billion. However, compared to the pre-crisis first quarter net profit of credit organizations fell by more than 5 times, noted RBC.

the quarterly profit Fall to such levels, the banking sector experienced in 2017 at the background of rehabilitation of large private banks. Then the third quarter was unprofitable for the sector (total loss of 95 billion roubles), and in the fourth quarter, the banks showed profit at a level slightly higher than in the quarantine quarter, to 115 billion rubles.

According to the Central Bank in April—June 2020 Russia’s GDP against the background of crisis phenomena in the economy caused by the insulation effect and falling oil prices, fell compared to the same period last year to 9,5—10%.

Earlier, the Chairman of the accounts chamber of the Russian Federation Alexey Kudrin has warned that Russian banks may soon face a shortage of capital and need for additional capitalization. According to him, “nedonoshennyh the amount of reserves equal to the value of the excess capital in the banking sector”. fouo;It’s not critical, but the risk is increasing. We must understand that after the easing of regulatory requirements will have to clear the area and give a real assessment of the risks that have a credit portfolio, and thus banks unable to meet capital shortfalls and will need a recapitalization of banks, or rehabilitation, or liquidation”, — stated the head of the controlling Agency.

however, he stated that since the beginning of this year, the quality of the loan portfolio of Russian banks has decreased, and this, says the head of the audit chamber, along with the decrease of profit and liquidity of banks is one of the risks for the Russian financial sector.

meanwhile, the Chairman of the Central Bank of Russia Elvira Nabiullina expects no serious problems with the capital of the Russian banks, as well as the transition of the system to liquidity shortage in the foreseeable future.

“the banks, Yes, decreased profits, but it is. It will be a source of capital. So, we did not see any problems that we have in the system lack of capital. Individual banks may have difficulty with which they cope. The same lack of liquidity. We do not see, first, in the foreseeable future that we will move to a liquidity shortage,” — said Nabiullina in the Federation Council.

however, she assured that the banking system of the Russian Federation in the past has gained sufficient strength to the crisis continue to evolve, providing support to their customers.

we also Add that the Russian economy in February—March 2020 was under the powerful impact of two negative factors — the rapid spread of the pandemic coronavirus infection COVID-19 and its deleterious effect on the global economy and collapse in oil prices. Against this background, the rouble significantly depreciated against the dollar and the Euro. Reacting to the situation, the government and the Bank of Russia adopted several packages of measures to support the economy and citizens.

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