The Central Bank is not interested in sharp devalorization financial system

© RIA Novosti / Natalia to Seliverstova in photobacteria the Central Bank of Russia on Neglinnaya street in Moscow. Archival photoThe Central Bank is not interested in sharp devalorization financial system© RIA Novosti / Natalia to Seliverstova the image Bank

Loans in foreign currency in Russia on may 1 decreased to 30% from 35% a year earlier, but the Bank of Russia is not interested in sharp devalorization financial system, said in an interview with RIA Novosti the Chairman of the Central Bank Vasily Pozdyshev.

He stressed that the official banking statistics of the end of last year and beginning of 2017 hides the beginning of the growth of loans to economy — the fact that despite the program devalorization, a significant portion of the loans the economy has previously been issued in foreign currency.

«Let me remind you that a year ago, about 35% of the loans were in foreign currency, and on may 1, 2017 is less than 30% of credits in foreign currency (which is still much)», — said the Deputy Chairman of the Central Bank.

Due to the fact that the ruble in the last period strengthened negative negative revaluation of the foreign currency portion of the loan portfolio makes it possible to see in the overall statistics, which is conducted in rubles, the ruble began the growth of the loan portfolio. That is, the ruble portfolio begins to grow, but the cost of the currency portfolio drops sharply, primarily because of its reassessment, he said.

«It is important that the change of loan portfolio structure and multi-directional dynamics of its foreign currency and ruble components is not simply the conversion of foreign currency loans in the ruble, and the new trend of the real growth of lending by Russian banks citizens and businesses,» said Pozdyshev.

From the beginning of 2017, the share of ruble denominated loans to enterprises increased from 68.7% to 70%, i.e. more than 2% in just four months.

«It is important to understand that this share has grown due to the growth of themselves ruble-denominated loans, whose portfolio has grown over four months by more than 1%, and by reducing foreign currency loans in dollar component (and not due to the revaluation) — 3%,» said Pozdyshev.

«Thus, regulatory measures to devolatization work quite effectively. We don’t want to stimulate a sharp increase in these rates, in order not to destabilize the banking system. It is our policy, we quarterly monitor this process», — said the Chairman of the Central Bank.

The issue of systemic stability

In terms of loans to individuals devolutionary to a lesser extent, the issue of systemic stability (as foreign currency loans to citizens very little), but mostly socio-political, said Pozdyshev.

He recalled that the Central Bank has previously taken regulatory measures to foreign currency loans has not been paid and now, according to him, they practically are not issued.

According to the Bank of Russia on January 1, 98,5% of loans loans to individuals were issued in rubles, and on may 1 to 98.8%. If ruble loans to individuals increased by almost 2% for the four months of the year 2017, foreign currency loans decreased by 12% in four months.

The share of ruble deposits is also steadily growing: on may 1, it is 77.5% against 76.3 per cent on 1 January. Ruble deposits grew by 1.8% in four months. Currency now the population holds 22% of the deposits, whereas a year ago was 26%.

«Funds and deposits of legal entities — the most difficult segment to devolatization. Traditionally, a large amount of money exporters have kept in currency. It is important to pursue a policy of devalorization, do not upset the balances of banks and exporters,» said Pozdyshev.

On may 1, 60% of funds of legal entities in banks is kept in rubles, a year ago it was 53%). And for the first four months of this year, foreign currency deposits of legal entities decreased by almost 3%. This net decrease of assets and liabilities in foreign currency, and not the effect of their impairment, he explained.