The Bank of Russia rejected the idea of freezing deposits as threatening the banking system

The Central Bank of Russia has rejected a proposal to freeze deposits, emphasizing that it could undermine the foundations of the banking system. The regulator said on January 13.

"This idea is absurd. Besides the fact that it is a gross violation of the rights of citizens and companies to dispose of their assets, such a step will undermine the foundations of the banking system and the financial stability of the country," - stated in the Telegram-channel.

According to the regulator, the freezing of deposits and restrictions on the use of funds of citizens and businesses can lead to the fact that people will stop trusting banks and place their money in them. This, in turn, will hinder 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 of Russia (CBR) 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.