Bank of Russia proposes increasing maximum insurance compensation and reducing insurance premium rates for long-term deposits and escrow accounts
The Bank of Russia proposes increasing the limit of insurance compensation for long-term deposits with maturities of over three years and for irrevocable savings certificates in rubles with maturities from one to three years to ₽2 million, and for irrevocable savings certificates for more than three years — to ₽2.8 million from today’s ₽1.4 million. Besides, the rates of insurance premiums for them paid to the Compulsory Deposit Insurance Fund (CDIF) may be lower than those for short-term deposits and foreign currency deposits.
These changes are intended to make long-term ruble savings more attractive to households, contribute to the strengthening of banks’ balance sheets, and improve the availability of long-term money for the economy.
Furthermore, the regulator suggests increasing the insurance coverage for escrow accounts to ₽20 million (₽30 million for the total of such accounts with the same bank) in order to reduce risks for apartment buyers considering the fast growth of housing prices in recent years.
Insurance premium rates are planned to be set at a level that would not change the total amount of payments to the CDIF. The burden on the sector will remain the same, while banks will be more encouraged to raise long-term ruble deposits.
The Bank of Russia welcomes feedback on this document through 30 April 2024.