Bank of Russia Reports April Shifts in Household and Corporate Balances
Data from the Central Bank of Russia shows that household funds rose in April by 604 billion rubles, a 1.6 percent increase. This change is documented in a report published on the central bank’s site. The rise in consumer deposits suggests households continued to park more savings with domestic financial institutions, even as broader market conditions evolved across the month.
In contrast, corporate liquidity moved in the opposite direction. Enterprise funds entrusted to Russian banks declined by 710 billion rubles in April. Both ruble balances and currency holdings recorded net reductions, with ruble balances down by 623 billion rubles and currency balances shrinking by 1.1 billion rubles. These figures point to a tightening of corporate liquidity within the banking system during the period, which could influence lending dynamics and investment decisions for businesses across the economy.
Earlier statements from the Bank of Russia signaled a planned adjustment to reserve requirements, slated to take effect on June 1. The central bank indicated a broad tightening of liquidity rules intended to bolster financial stability and strengthen banks’ ability to absorb shocks should market conditions deteriorate.
Specifically, the regulation would raise the N1 level for all ruble liabilities held by banks and non-bank credit organizations with universal licenses to a maximum of 0.5 percentage points, reaching up to 4.5 percent. For liabilities denominated in foreign currencies, the rate would increase to a cap of 6 percent across all banks for all categories of separable liabilities, excluding liabilities in currencies of non-friendly countries. In addition, reserve ratios for liabilities in currencies of non-friendly countries would see an uplift by 1 percentage point, moving toward an upper bound of 8.5 percent. These changes reflect a policy stance aimed at reinforcing resilience in the financial system amid evolving international and domestic conditions. [Source: Central Bank of Russia report]