The decline in interest rates on the underlying ruble deposits of the savings Bank, with the simultaneous introduction of the Deposit with higher rate coincided with the statements of the Bank of Russia about the possibility of a more radical reduction of the key rate. The savings Bank followed in the General trend — after the previous decision of the Central Bank at a rate of at least ten credit institutions had reduced the profitability of deposits. According to market participants, in the near future most banks will adhere to this strategy is to lower interest rates on the main line, arranging temporary promotions with higher rates on individual deposits.Friday, may 8 at the weekly press conference the head of the Bank of Russia Elvira Nabiullina did not rule out that the key rate can be reduced immediately by 1 percentage point, to 4.5%. As if anticipating such a statement the regulator, the savings Bank since 8 may cut interest rates to a number of rouble deposits mainly by 0.35 percentage points (PP). The result is the most profitable of permanent contributions will bring customers to a maximum of 4.15% per annum. For other deposits, the maximum rate fell to 3.45% to 3.8% per annum. Moreover, the maximum yield can be obtained by placing the funds in 6-12 months on more long-term rates will be lower. However, the investor will receive slightly less income as with every thousand rubles one ruble will be sent to the charity Foundation “Memory of generations”, which provides targeted medical assistance to veterans of all combat actions in which participated the country. Taking into account the fact that the Deposit is strictly for six months without replenishment and withdrawal of funds, the final yield will be 4.5% per annum.Sberbank attributed the lower rates with the General trend in the market, in particular with a reduction in the key rate of the Central Bank on 24 April by 0.5 percentage points to 5.5% per annum. Then, analysts predicted that banks can begin to compensate for lost revenues from lower rates on deposits to increase interest margins, two weeks after the decision of the Central Bank, the maximum interest rates on individual deposits decreased about a dozen Russian banks, including “FC OTKRITIE” Bank, MKB Bank, UniCredit, Bank “St.-Petersburg”. Reduction usually amounted to 0,15–0,35 p. p., although in some cases reached 0.6 percentage points In April, according to the Bank, the situation with the population’s deposits has improved — according to preliminary data, at the end of the month, the growth of funds on accounts of natural persons amounted to about 0.8% (after falling 1% in March).According to bankers, the deposits market in may will be determined by two factors — further reduction of the key rate of the Central Bank as the driver of reducing the cost of funding and the problem of outflow of deposits as a driver of interest rates to retain depositors. “With high probability the banks will enter tocheq��s a short-term solution (not more than 3-6 months) for holding portfolios (pronouced or raise the bet on the current contribution), while reducing interest rates on other savings products”,— consider in VTB. And such situation will continue at least until the beginning of June, waiting in the Bank. Director of product and technology Mail-Bank Grigory Babadzhanyan also believes that in the medium term the market expects lower rates on deposits, though perhaps a slight increase in percentage for individual types of deposits. The Director of the Department of settlement and savings products PSB Natalia Voloshin believes that based on the situation on the market, Deposit rates will remain close to current levels.Analysts largely expect lower rates on deposits. Director of the group ratings of financial institutions of an ACRE Valery Piven is confident that given the fact that the Bank of Russia has clearly expressed its commitment to loose monetary policy, it is possible to expect reduction of interest rates on Bank deposits. “In addition, the anticipated decline in demand for loans is likely to force banks to limit the inflow of funds on deposits, which will also help to reduce the cost of attracting,” said he. At the same time managing Director of rating Agency NKR Stanislav Volkov believes that banks will reduce interest rates cautiously, introducing special offers for online-customers. “On the one hand, decreased the key interest rate, on the other — the flow of new savings falls after the income and inflation expectations remain high. Therefore, banks will closely monitor not only the actions of competitors, how much the mood of investors in those regions, where their resource base,” he said.Maxim Builov
