Economist explained the reduction of deposit rates by banks

Deposit rates for households were reduced by 10 out of 20 largest Russian banks. This is evidenced by the data of financial marketplaces. On Monday, January 13, Alexei Vedev, former Deputy Minister of Economy, Doctor of Economic Sciences, named the reasons for this phenomenon.

On average, deposits have become less favorable by 0.5%. The largest reduction in rates was recorded in the following banks: Gazprombank, Alfa Bank, T-Bank, Bank Dom.RF and Bank "St. Petersburg".

Vedev reminded that the Central Bank before the New Year left the key rate unchanged. Therefore, the banks' expectations of money appreciation did not come true.

He noted that the unchanged key rate affected the bond market.

"Both short and long federal loan bonds have become cheaper. Bonds with a term of two years yield 22% per annum, and for a year - 18%. Yields on company bonds have also fallen. Banks are actively investing in such securities. Why should they pay out more money on deposits than they get from the bonds they buy? Banks do not need liabilities more expensive than assets", - explains the expert in conversation with "Abzats", adding that banks reduce the yield of their deposits for the population in order not to be in the negative.

Earlier in the day, the Central Bank of Russia said it had rejected a proposal to freeze deposits, emphasizing that it could undermine the foundations of the banking system, reports. RT.

According to the regulator, freezing deposits and restrictions on the use of funds of citizens and businesses may lead to the fact that people will stop trusting banks and placing their money in them, the kp.ru website reported. This, in turn, will hamper lending to the economy.

In addition, the Central Bank of Russia ruled out the possibility of using deposit freezing as a measure to fight inflation instead of raising the key rate.

Earlier, on November 19, 2024, the head of the Central Bank (CBR) of Russia Elvira Nabiullina said that talks about freezing deposits in Russian banks are nonsense. According to her, banks pay interest on deposits at the expense of interest on loans, as they are always higher than deposit rates. Nabiullina pointed out that businesses take loans at such high rates in the expectation that the rate will go down.