Column by Ksenia Dementieva on maintaining benefits for banks

On Wednesday, the Board of Directors of the Deposit Insurance Agency (DIA) made an unexpected decision to extend zero surcharges on contributions to the Deposit Insurance Fund (DIF). The reasons for the DIA were not disclosed. The additional and increased additional rates were reset to zero in February 2022. Initially, this measure is aimed at improving the ability of banks to manage liquidity: on February 28, the Central Bank raised the key rate to 20% per annum from the previous 9.5% in order to support financial and price stability, as well as protect citizens’ savings from depreciation.

Until then, since 2013, the rate of 17%, set in December 2014, was considered a record value. Deposit rates followed the key one, so the support measure looked justified. It was valid for deposits attracted in the first and second quarters of 2022, then it was extended twice – as a result, until the end of the first half of 2023. Prior to this, the amount of additional and increased additional rates of insurance premiums was 25% and 300% of the base rate (0.12% of the calculated base), respectively.

Before the abolition, contributions had to be paid only by banks that overestimate rates by 2–3 percentage points compared to the average market level, as well as credit institutions with an unstable financial situation. That is, the measure was aimed at limiting the practice of high-risk deposits.

Back in June last year, the head of the DIA, Andrey Melnikov, explained the cancellation of contributions by the fact that due to turbulence in the financial market, there was a shift in the boundaries of banks that fall under increased contribution rates. “Historically, the proportion of these contributions is extremely small, about 1.5%,” he admitted. “When the situation stabilizes, most likely there will be a return to the normal collection regime, because they will truly reflect the system of risks that banks take on “.

The situation in the banking sector in general and liquidity in particular has stabilized. Thus, in May, according to the Central Bank, the volume of household deposits in banks increased by 443 billion rubles, or by 1.2% (in April – by 1.6%). In addition, both the Bank of Russia itself and its supervised banks are counting on the fact that by the end of the year a historical record in terms of the sector’s total profit will be broken. This week, the Central Bank even returned to the publication of bank statements (see “Kommersant” dated June 28). It would seem that all the conditions for a “return to the normal mode of collection of contributions” in the FSV are obvious. But no.

Neither experts nor market participants with explanations of why not, did not help me. The only assumption left was the desire of the Central Bank to “soften in the eyes of the market” with little bloodshed the cancellation of various other anti-crisis reliefs. Well, or stabilization actually did not happen, we just do not understand something. Reporting, after all, is still severely limited.