Deposit standing facilities (overnight deposits)
Deposit standing facilities are aimed at the following objectives. The fixed interest rate on overnight deposits (currently the key rate less one percentage point) makes the lower bound of the interest rate corridor, that is, the range within which interbank market overnight rates can fluctuate. The Bank of Russia’s interest rate corridor not only limits the fluctuations of the said rates but also brings them closer to the key rate.
The information on deposit standing facilities terms and conditions is posted on the Bank of Russia website on a daily basis and may include:
- overnight deposit maturity (if differs from the length of a transaction day);
- the minimum and maximum overnight deposit amount (if limited) (Terms and conditions of deposit standing facilities).
To place an overnight deposit, a credit institution shall submit to the Bank of Russia a payment order for the transfer of funds from its correspondent account to the overnight deposit account. A credit institution may submit multiple payment orders during a transaction day (or the other period for overnight deposit established by the Bank of Russia). The transferred amount should not be less than the minimum amount or exceed the maximum amount of the overnight deposit, if such amounts are established by the Bank of Russia.
The Bank of Russia forwards the credit institution a notice to confirm the placement of the overnight deposit and its amount on the day when the payment order that meets the established requirements is executed.