Bank of Russia updates approaches to managing collateral for its operations

From 6 November 2024, credit claims included in collateral pools will be accepted as collateral only for intraday, overnight, and supplementary mechanism loans.

Eligible credit claims included in collateral pools before 6 November 2024 will continue to be accepted as collateral for primary mechanism loans. However, credit institutions will not be allowed to increase the amount of such claims.

This measure is aimed at preventing credit institutions from using monetary policy operations to ensure compliance with the liquidity coverage ratio.

The existing collateral under the primary mechanism of liquidity provision is sufficient for the Bank of Russia to provide funds to credit institutions to make payments and maintain required reserves, which meets the objectives of the said mechanism. The reduction in the amount of credit claims accepted as collateral for primary mechanism loans will be gradual and will not influence the money market. In case of any changes in the liquidity situation, the Bank of Russia can promptly move credit claims from the supplementary mechanism of liquidity provision to the primary one.

The reference to the Press Service is mandatory if you intend to use this material.

05.11.2024 18.15.00