The Bank of Russia has declared that it lowers its credit risk limits and raises its minimum credit capacity ratings

On 16 November, the Bank of Russia published the information that, from 1 February 2010, the credit risk limits will be lowered and the minimum credit capacity ratings will be raised – the latter being generated by the three national rating agencies and necessary for obtaining unsecured credits.

It should be reminded that on 10 October 2008 the RF State Duma adopted a law that allowed the Bank of Russia to issue credits to Russian commercial banks, which made it possible for the RF Central Bank to maintain a sufficient liquidity level in the RF banking system in the period of crisis. It is evident that such credits were applied as an anti-crisis measure, and so they should no more be granted during the period of a stable development of the national economy.

In conditions of restoring global financial markets and this country’s national economy, Russian credit institutions have already substantially lowered their outstanding debts against the unsecured credits issued to them by the RF Central Bank. This happened as a result of both the lowered risks and the newly gained access to alternative sources of funding. The planned toughening of the terms of obtaining unsecured credits is aimed at reorienting Russian banks towards market sources of funding.

Besides, the RF Central Bank relies on the continuation, in the medium term, of the rehabilitation of the Russian economy. However, in case of need the Bank of Russia may once again quickly resort to an active application of this credit instrument.

P. V. Trunin – Candidate of Economic Sciences, Head of the Department for Monetary Policy