The Central Bank did not see a reason for new benefits to banks due to the freezing of the euro

The Bank of RUSSIA is not ready to provide the market with liquidity to replace the one that was frozen in the National Settlement Depository due to EU sanctions. We can talk about the balance of €4,

The Bank of Russia did not see the need to compensate banks for losses from the sanctioned freezing of their money in the National Settlement Depository (NSD). This is stated in the regulator's response to the appeal of the Association of Banks of Russia (ADB). In June, in the interests of market participants, it offered options to mitigate the losses that banks suffered due to EU restrictions against NSD. RBC has a response letter from the Central Bank, its authenticity was confirmed by an ADB representative.

On June 3, the EU authorities introduced a new package of sanctions against Russia, unexpectedly blacklisted NSD - the structure of the Moscow Exchange, which keeps records of ownership of securities, and also settles transactions. As a result, NSD stopped conducting transactions in euros for the benefit of counterparties, including banks. For them, this meant freezing euro balances on correspondent accounts. According to Frank Media sources, €4.5-7 billion were blocked.

ADB proposed to the Central Bank to develop mechanisms that would allow market participants to return funds that were stuck in the NSD in a different currency, since the euro is no longer available. For example, the bankers wanted to involve the Bank of Russia as an intermediary that would provide credit institutions with lost liquidity - it would conclude swap transactions “in the amount of held balances in euros” with NSD’s affected counterparties on special conditions. In particular, at a zero or minimum possible rate, for a long period, with the possibility of prolonging the transaction until the problem is resolved, with the possibility of its early closure at the initiative of the bank without penalties.

“Credit organizations currently have sufficient assets to attract additional liquidity from the Bank of Russia,” the Central Bank responded. The regulator considered it inappropriate to expand the range of instruments, including through swap transactions on preferential terms, follows from its response. The Bank of Russia did not respond to RBC's request, citing the beginning of a week of silence before the key rate meeting (which will be held on Friday, July 22).

"The problem is much wider"

The response of the Central Bank showed that the regulator sees the problem, but is confident that the market will cope on its own in terms of liquidity, ADB Vice President Alexei Voylukov told RBC. He stressed that the banks' proposals to expand liquidity provision instruments are not limited to those who have encountered problems with NSD.

“Since the imposition of sanctions, the problem has been much broader than the blocking of funds in NSD. The main players in the swap market were non-residents of unfriendly countries, and now we are seeing a significant decline in the volume of this market. It is obvious to us that a return to discussing this issue with the financial authorities is inevitable,” Voylukov said.

Read on RBC Pro Pro US Marketfalls. It's time to "buy the bottom" or it's ahead - expert opinions Forecasts Pro Hoop, corset, press exercises:sanctionsfrom a person or company. Step-by-step instruction Instructions Pro In Russia, there are new requirements for the cybersecurity of companies.

The Central Bank saw sanctions risks for the Russian currency accounting center

According to the Central Bank, as of July 15, the structural liquidity surplus in the banking sector amounted to 2.66 trillion rubles. - this is the amount by which banks' deposits with the Central Bank exceed the obligations of market participants to the regulator. In March, at the peak of the crisis, the sector found itself in a state of structural liquidity shortage (7 trillion rubles), but already in April the situation stabilized. Since the beginning of June, banks' surpluses placed with the Central Bank have been above 2 trillion rubles, except for one day.

Net debt of banks to the Central Bank against the backdrop of Western sanctions exceeded ₽5 trillion Finance

As noted in a letter from the Central Bank to the ADB, the regulator at the end of June gave banks relief in terms of reserves and the calculation of standards, which are affected by balances in the NSD that fell under the freeze. In addition, the Bank of Russia repeated to market participants the recommendations on devaluation of balance sheets. “In the current period, this policy becomes even more relevant,” the letter says.

In May, an excess of foreign currency liquidity formed on the Russian market: credit institutions even had to pay extra for placing dollars. Under these conditions, banks began to introduce commissions for individual clients for holding foreign currency on current accounts, and the authorities and the Central Bank began to prepare legislative changes to allow credit institutions to introduce negative rates on foreign currency deposits for legal entities. The State Duma adopted these amendments on July 6, and on July 14 the President signed the law. It has already entered into force. Banks can introduce negative rates for corporate clients not only on new foreign currency deposits, but also on already opened ones.