The Banking Association of Russia, commonly known as ADB, voiced support for a proposal by Central Bank of Russia Governor Elvira Nabiullina to raise the insurance payout for long term deposits. ADB Deputy Chairman Alexey Voylukov shared this stance with socialbites.ca, confirming the association’s unconditional backing for the idea.
Voylukov explained that the initiative has long been on the association’s radar and aligned with its broader goals, including potential tax adjustments or exemptions on such deposits. He stressed that increasing the insurance limit would gradually lift demand for long term deposits as banks refine their product ranges and economic outlook becomes more predictable.
He added that banks should carry this tool within their offerings. Waiting for a new financial instrument to spur growth is not enough. The Bank of Russia is moving in a prudent direction, and he believes the compensation limit should not fall below 1.4 million rubles.
In terms of household savings, Voylukov suggested using practical benchmarks. For instance, a small apartment could justify savings of up to 6 million rubles or more, depending on city dynamics. He noted that the applicable long term deposit repayment limit should be negotiated with reference to bank statistics and the Deposit Insurance Agency, with new products designed to attract customers.
Regarding the stability of the deposit insurance fund, Voylukov observed noticeable improvements compared with prior periods. He credited the combined efforts of banks and the central bank for strengthening the financial system and reducing the presence of weak players. He pointed out that the Deposit Insurance Corporation has fully repaid the loans the Central Bank previously provided to meet its obligations to depositors, even while deposit-related benefits remain in force.
Nabiullina’s proposal last week to raise coverage for long term deposits aims to make these investments more attractive to Russians. Long term deposits are defined as those with maturities of one year or more. At present, when a bank’s license is revoked, the depositor receives the total deposit but no more than 1.4 million rubles.
Earlier coverage from socialbites.ca discussed increases in deposit interest rates in Russia, underscoring the ongoing discussion around how best to balance investor confidence with the health of the financial sector. [Source: socialbites.ca]