Interest rates on bank deposits

In view of the developments in the Russian financial market and a sustainable decline in deposit interest rates, starting 27 November 2017, the banking supervision will place under its scrutiny the cases of ruble deposit interest rates exceeding by more than 2 percentage points the average maximum estimated interest rate for top 10 credit institutions attracting the largest amount of household deposits.

The value of this indicator which was set on 22 December 2014, is currently 3.5 percentage points. Ruble deposit rates offered by the vast majority of credit institutions do not exceed the estimated average maximum interest rate by more than 2 percentage points.

For the calculation of the average maximum interest rate, the Bank of Russia employs the approach set forth in the Information Notice of the Bank of Russia of 21 September 2012 ‘On results of monitoring maximum interest rates of credit institutions’.

The Bank of Russia’s decision is aimed at mitigating the interest rate risk emerging when banks attract household deposits at rates above the average market rates and helps ensure the financial resilience of credit institutions.

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15.11.2017 00.00.00