Governor of the Central Bank of the Russian Federation Elvira Nabiullina proposed increasing the amount of insurance compensation for long-term deposits. She announced this initiative with the text of her speech at the International Finance Congress. given on the organizer’s website.
“You know long-term deposits are quite rare and banks have very short-term funding, but banks need to be able to attract stable long-term liabilities. What would be the incentives we would like to discuss? The first is that the insurance compensation for long-term deposits may be higher than for regular deposits,” the Central Bank governor noted.
Nabiullina also believes that banks should pay less contribution to the deposit insurance fund for long-term deposits.
“I think we need to talk about all these incentives. “But of course, the main element of extending the life of deposits is price stability and reducing fears that savings will be consumed by inflation in the long term,” he emphasized.
Bank deposits are insured by the Deposit Insurance Agency. Upon cancellation of the bank’s license, the deposit amount up to 1.4 million rubles is fully refunded to the depositor. Currently, interest on deposits in Russian banks is at 10-13% annually.
Long-term deposits are considered deposits with a maturity of more than one year.
Previously “socialbites.ca” saidHow to save and increase money in 2023.