The Central Bank of the Russian Federation is concerned with some banks understating the deposit rates; the regulator is to discuss with the market the option of introducing a minimum rate, said the Head of the Central Bank Elvira Nabiullina.
Earlier, First Deputy Governor of the Central Bank of Russian Federation Sergey Shvetsov said that it is expedient to impose restrictions on the minimum level of deposit rates so that the major banks do not understate.
“We are talking about mechanisms of ensuring fair competition on the deposits market. We are concerned that there are indeed some banks here that may say: We are going to undercut the rates, and using your status we will still raise funds at fairly low rates',” Nabiullina told journalists.
“However this needs to be discussed, and we should approach it carefully, because any regulation, or intervention, may have negative consequences, for both maximum and minimum rates regulation. Therefore, we will approach it carefully, we need to discuss these proposals with the market, to review it,” she said.
Source: RIA Novosti/Prime