Personnel changes (30.11.2018)

Source: Central Bank of the Russian Federation in English

The Central Bank of the Russian Federation (Bank of Russia)
Press Service
12 Neglinnaya Street, Moscow, 107016 Russia;www.cbr.ru

Information Notice
Personnel changes
Alexander Torshin, State Secretary — Deputy Governor of the Bank of Russia retires from his position.

30 November 2018
The reference to the Press Service is mandatory if you intend to use this material.

MIL OSI

US Dollar/Rouble and Euro/Rouble Exchange Rates and Exchange Trade Indicators

Source: Central Bank of the Russian Federation in English

]]>
Date
Unified Trading Session
US dollar
Euro
for ‘today’ settlements
for ‘tomorrow’ settlements
for ‘today’ settlements
for ‘tomorrow’ settlements
average weighted rate (rubles/US dollar)
volume (millions of US dollars)
average weighted rate (rubles/US dollar)
volume (millions of US dollars)
average weighted rate (rubles/euro)
volume (millions of euros)
average weighted rate (rubles/euro)
volume (millions of euros)
29/11/2018
66.5584
1,250.3940
66.4877
3,899.4110
75.8127
305.2660
75.6500
410.9920
28/11/2018
67.1794
1,168.2030
67.2220
3,474.6120
75.6583
257.2790
75.8141
391.8270
27/11/2018
66.7363
1,075.5230
66.8647
3,299.9010
75.5059
247.7220
75.6199
326.8390
26/11/2018
66.6714
1,482.4250
66.8083
4,193.7220
75.6262
368.4880
75.8792
397.6420
23/11/2018
65.7081
1,252.5270
65.8950
4,096.4550
74.7379
359.7980
74.8302
371.4160
22/11/2018

0.0000
65.5675
2,061.7320
74.7742
423.3410
74.7835
323.3640

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MIL OSI

Insurance market: key Q2 results

Source: Central Bank of the Russian Federation in English

Growth of the insurance market decelerated in the second quarter to 7.5% against the same period a year earlier with total insurance payments standing at 354.4 billion rubles. Rising life insurance payments remains the key market growth driver according to the Review of Insurers’ Key Indicators.
The second quarter saw life insurance payments rising to 32.1 billion rubles. However, the reduction in insurance premiums in mandatory types of insurance limited the rise in overall payments to 24.7 billion compared to the second quarter last year. Both health/accident insurance and voluntary health insurance posted positive figures driven by expansion in lending and inflation of the cost of medical services respectively.
Motor own damage insurance premiums turned in positive Q2 performance for the first time in several years as demand for cars mounted. At the same time, the average premium showed a persistent decline of 17% to 34.8 thousand rubles coming as a result of the development of programmes with limited lists of risks or franchise.
Banks remain by far the biggest sales channel, accounting for almost 50% of all premiums under intermediated contracts. Life insurance and health/accident insurance accounted for the most policy sales by credit institutions.
Q2 payouts dropped 16% on the same period in 2017 to 126.7 billion rubles.
Insurance sector profits in the first half rose 44% to total upwards of 110 billion rubles on the back of the positive result posted by non-life insurance operations and investment profits.
29 November 2018

MIL OSI

Inflation expectations remain elevated in November

Source: Central Bank of the Russian Federation in English

Households’ inflation expectations remained elevated in November at 9.8% (9.3% in October) reports one of the latest Bank of Russia commentaries. The main reason behind the November rise in the expectations was the price fluctuations of petrol and certain food products.
Households’ expectations still largely depend on price growth of certain marker goods. For example, petrol remains one of the key commodities whose price dynamics influence households’ inflation expectations. Only meat and poultry were mentioned by respondents more frequently than petrol.  Respondents also mentioned more frequently price growth of dairy products, bread and bakery products, eggs, sugar, tea and coffee. Moreover, many of them expect price growth on the eve of the New Year holidays.
It should be noted that the observed headline inflation remained unchanged in November at 10.1%.  Thus, inflation expectations are almost equal to observed inflation, which is indicative of the fact that respondents do not expect the slowing of inflation in the next 12 months. This corresponds to the Bank of Russia forecast of inflation growth in the first half of 2019 influenced, inter alia, by the VAT hike.
28 November 2018

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Bank of Russia coupon bonds placed (29.11.2018)

Source: Central Bank of the Russian Federation in English

Information Notice
Bank of Russia coupon bonds placed
The Bank of Russia decided to place the 16th and the 17th issues of Bank of Russia coupon bonds (coupon OBRs) and approved the coupon OBR-16 and coupon OBR-17 issue decisions.
Further decisions on placement of new Bank of Russia coupon bond issues will be made when necessary and taking into account expected banking sector liquidity, with a view to absorbing the stable component of a structural liquidity surplus.
Details of auctions to place issues Nos. 4-16-22BR1-8 and 4-17-22BR1-8 will be announced in due course.

29 November 2018
The reference to the Press Service is mandatory if you intend to use this material.

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Bank of Russia Bulletin released (28.11.2018)

Source: Central Bank of the Russian Federation in English

Information Notice
Bank of Russia Bulletin released
Bank of Russia Bulletin No. 85 (2039) of 28 November 2018 has been released.
The issue publishes the list of credit institutions with appointed authorised representatives of the Bank of Russia.
The Bulletin informs about Bank of Russia service fees, recognition of the payment system Gazprombank as nationally important, and securities included in the Bank of Russia Lombard List.
The Credit Institutions section publishes information on operating credit institutions with non-residents’ participation as of 1 October 2018.
The Bulletin publishes the following Bank of Russia orders:
No. OD-3031, dated 22.11.2018, on the termination of activity of the provisional administration to manage the Cherkessk-based credit institution К2 Bank (JSC);
No. OD-3032, dated 22.11.2018, on the termination of activity of the provisional administration to manage the Rostov-on-Don-based credit institution Ltd. Russky Natzionalny Bank;
No. OD-3033, dated 23.11.2018, on the revocation of the banking licence and on cancelling the licence of professional securities market participant of the Moscow-based credit institution CB Russian Mortgage Bank (LLC);
No. OD-3034, dated 23.11.2018, on appointing the provisional administration to the Moscow-based credit institution CB Russian Mortgage Bank (LLC) due to the revocation of its banking licence;
No. OD-3035, dated 23.11.2018, on the revocation of the banking licence and on cancelling the licence of professional securities market participant of the Krasnodar-based credit institution Bank Pervomaisky (PJSC);
No. OD-3036, dated 23.11.2018, on appointing the provisional administration to the Krasnodar-based credit institution Bank Pervomaisky (PJSC) due to the revocation of its banking licence.
The Non-bank Financial Institutions section contains the following Bank of Russia orders:
No. OD-3010, dated 20.11.2018, on amending the Appendix to Bank of Russia Order No. OD-2258, dated 30 August 2018;
No. OD-3027, dated 22.11.2018, on the termination of activity of the provisional administration of the Insurance Company Diamant, limited liability company.
The Bulletin publishes information notices about the forthcoming auction of real estate constituting the assets of the closed-end rental unit investment fund Agrocapital.
The issue presents consolidated data on financial market sectors and information notices by the Bank of Russia.
The Official Documents section publishes the following materials:
Bank of Russia Regulation No. 652-P, dated 3 September 2018, ‘On the Procedure for Calculating Operational Risk’ (becomes effective 10 days after its official publication; posted on the Bank of Russia website on 26.11.2018);
Bank of Russia Ordinance No. 4943-U, dated 25 October 2018, ‘On Amending Bank of Russia Ordinance No. 3409-U, Dated 2 October 2014, ‘On Maintaining the Unified State Register of Authorised Actuaries’ (becomes effective 10 days after its official publication; posted on the Bank of Russia website on 22.11.2018);
Bank of Russia Ordinance No. 4945-U, dated 26 October 2018, ‘On Amending Bank of Russia Ordinance No. 4083-U, Dated 25 July 2016, ‘On the Forms, Timeframe and Procedure for Compiling and Submitting to the Bank of Russia Documents Containing the Activity Report and the Report on the Composition of the Governing Bodies of a Consumer Credit Cooperative’ (becomes effective 10 days after its official publication; posted on the Bank of Russia website on 23.11.2018).

28 November 2018
The reference to the Press Service is mandatory if you intend to use this material.

MIL OSI

Foreign Direct Investment the Russian Federation by Geographical and Economic Zones

Source: Central Bank of the Russian Federation in English

According to macroeconomic statistics, in 2016 Q4 – 2017 Q1, the amount of external debt repayments by non-financial organisations, including principal and interest, totals $23 billion and $20.7 billion respectively.
As it is the case, the peak of repayments occurs in December according to macroeconomic statistics ($13.4 billion), with the bigger portion of these repayments likely to be rolled over. This December, the amount of repayments is scheduled to be down by 24% year on year.
Additionally, the schedule for the period under consideration shows that considerable external debt repayments are due in March 2017 ($12.8 billion). According to Bank of Russia estimates, the main portion of these payments is made up of the liabilities of 30 Russian companies – largest borrowers in external markets. Out of this amount, roughly $4.8 billion represent intragroup payments, and $3.8 billion – scheduled Eurobond repayments by several large non-financial organisations which have sufficient foreign currency liquidity to service their debt obligations.
Overall, actual payments may reach $21.6 billion in 2016 Q4 and $15.2 billion in 2017 Q1. The rest of this amount represents intragroup payments (these are established for 30 Russian companies – largest borrowers in external markets), which, as a rule, are likely to be rolled over and restructured.
According to the Bank of Russia’s survey of top companies, the share of intragroup borrowings in the total amount of external debt repayments by large borrowers had the following readings across 2016: 0.2% in October, 17% in November, 29% in December; and across 2017: 24% in January, 23% in February, and 40% in March. As adjusted by intragroup funding, the repayments by the largest companies will total $6.3 billion in 2016 Q4 and $9.8 billion in 2017 Q1.
Schedule of due external debt repayments by 30 top borrowers – non-financial organisations in 2016 Q4 – 2017 Q1*
Indicators
2016
2017
Oct
Nov
Dec
Jan
Feb
March
Total due payments, $ million
1,687
3,194
2,749
1,285
2,064
11,958
Net payments, $ million
1,684
2,638
1,938
975
1,599
7,198
Share of intragroup funding
0%
17%
29%
24%
23%
40%
* Q4 readings are adjusted by the up-dated information from transaction specifications issued by authorised banks when executing foreign currency transactions between residents and non-residents.
19 October 2016

MIL OSI

Securities included in Bank of Russia Lombard List (28.11.2018)

Source: Central Bank of the Russian Federation in English

Information Notice
Securities included in Bank of Russia Lombard List
According to the Bank of Russia Board of Directors’ decision, the following securities have been included in the Bank of Russia Lombard List:
government bonds of the Novosibirsk Region with Issue State Registration Number RU34019ANO0;
government bonds of the Sverdlovsk Region with Issue State Registration Number RU35005SVS0;
exchange-traded bonds of Public Joint-stock Company Federal Grid Company of Unified Energy System with Issue Identification Number 4B02-01-65018-D-001P;
exchange-traded bonds of the State Company Russian Highways with Issue Identification Number 4B02-03-00011-T-001P;
exchange-traded bonds of Open Joint-stock Company Russian Railways with Issue Identification Number 4B02-09-65045-D-001P;
exchange-traded bonds of Joint-stock Company DOM.RF with Issue Identification Numbers 4B02-03-00739-A-001P and 4B02-04-00739-A-001P.

28 November 2018
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MIL OSI

Bank of Russia receives more complaints and petitions in October

Source: Central Bank of the Russian Federation in English

In 2018, the Bank of Russia received as many as 10.8 thousand complaints against credit institutions. This is 24% more than the previous month (seen as a kind of seasonal surge against the previously recorded drop). As before, the bulk of them (39%) is related to consumer lending issues – although their share is down one percentage point from September.
Non-bank financial institutions were the subject of 6.6 thousand complaints, also marking a 24% rise on September. The regulator has noted the substantial decline in the number of appeals in this segment as a long-term trend: in the first ten months of 2018, there were 25% fewer such complaints than in the same period last year. Having said that, the number of complaints against banks went up 15%, which sent the total number of complaints addressed to the Bank of Russia between January and October higher by 4.5% than in the first ten months of 2017.
The regulator has recorded growing complaints against insurance companies in October. As many as 3.6 thousand such complaints were received, which is 5 pp up on September. OSAGO continues to draw the most complaints from financial consumers (76%), with this figure growing 6.8% against last month. The bonus-malus coefficient (BMC) is still the key issue.
At the same time, the first ten months of 2018 saw a 39% decline in the number of OSAGO-related complaints against the same period the prior year. The decline was led by a reduction in issues related to concluding OSAGO contracts electronically (–61%) and in applying BMC (–39%). Despite this, these issues topped the list of problems in the segment.
In October 2018, the regulator received 1.6 thousand complaints against microfinance organisations – an increase of 400. This may have been driven by intensified operations of illegal lenders that pretend to act as microfinance organisations, as well as the still immature financial literacy of consumers: they may fail to check on the status of the organisation they take out a loan from. In case of late payment, illegal lenders may threaten borrowers with illegal collection methods; only law enforcement authorities can be of help then. The analysis of consumer complaints related to collection – which tops the list of complaints related to microfinance organisations, tends to reveal that only an immaterial number of offences are committed by microfinance organisations themselves.
The aggregate number of complaints (including other complaints, appeals and suggestions) the regulator received from financial consumers in October was 20.8 thousand.
27 November 2018

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Faster Payments System fees

Source: Central Bank of the Russian Federation in English

The Bank of Russia Board of Directors has approved transfer fees for banks using its Faster Payments System (FPS), which is due to become operational in early 2019. The commissions range between 1 and 6 rubles, depending on the transfer amount.
‘The Faster Payments System is a critical nationwide infrastructure project. It will ensure that, on the one hand, all market players enjoy equal access to this market and, on the other, that our consumers have an easy-to-use, reliable and simple online payment service’, said Olga Skorobogatova, First Deputy Governor of the Bank of Russia. ‘Also, given the social value of the project, our FPS terms of service will be appealing to banks – so they in turn will be able to offer equally minimal fees to their customers. Importantly, we will also be offering a grace period of one year, during which the Bank of Russia will charge banks no service fee. Our hope is the Faster Payments System will markedly drive down payment private customer fees’.
The Faster Payments System will enable private consumers to make instant online payments 24/7 using simple identifiers (e.g. a mobile number) regardless of in which banks sender / recipient have their accounts.
Moving forward, FPS functionality will expand, making transfers to state authorities and legal entities possible. Further identifiers will be introduced that can be used to authorise money transfers.
26 November 2018

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