The Bank of Russia increased the scope of disclosed statistics on banking sector liquidity

The Bank of Russia started to publish daily data on the banking sector liquidity deficit (surplus). This statistics will allow its users to improve their understanding of the situation with the banking liquidity.

Liquidity surplus implies that the credit institutions funds in their accounts with the Bank of Russia exceed the amount required to fulfill reserve requirement and carry out payments. Banks place these surplus funds with the Bank of Russia through its liquidity absorbing instruments: deposits and, eventually, Bank of Russia bonds. Structural deficit, on the contrary, means that the banking sector as a whole has to borrow liquidity form the Bank of Russia for reserve requirement fulfillment and carrying out their operational activity.

Under any liquidity conditions there are both banks who borrow liquidity from the Bank of Russia and who invest it into the Bank of Russia instruments. Therefore, structural liquidity deficit (surplus) is calculated as a balance of outstanding amounts on liquidity providing and liquidity absorbing operations of the Bank of Russia.