On cancelling non-competitive bids in the Bank of Russia deposit auctions

The Bank of Russia decided that, from 26 July 2018, credit institutions’ bids without indicated interest rate (non-competitive bids¹) will not be accepted for deposit auctions.

The decision is of technical nature and it is aimed at facilitating collection and fulfilment of bids in the deposit auctions. It will also prevent deposit auctions from being recognised as invalid when aggregate volume of funds under the submitted non-competitive bids exceeds the limit on funds to be attracted in deposits, placed by the Bank of Russia.

The measure is also intended to encourage credit institutions to determine the market rate by themselves and to take a more balanced approach to managing their liquidity.

¹ Before the said date the maximum share of non-competitive bids was limited to 10% for each submission channel.

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