Banks find opportunity to work under sanctions — Central Bank chief
The Russian Central Bank has unexpectedly kept the key rate unchanged at 21% per annum.
It does not mean there will be no such risks in the future but it is very important in this regard for the financial stable to remain stable, Elvira Nabiullina said
Russian Central Bank Governor Elvira Nabiullina Peter Kovalev/TASS
MOSCOW, December 20. /TASS/. Ninety-five percent of assets of the Russian banking sector are under sanctions but banks find an opportunity to work in such environment, Central Bank chief Elvira Nabiullina said at the press conference after the regulator’s Board meeting.
“I would like to remind that we have 129 banks under sanctions now; there were two times less of them a year ago. Approximately 95% of the banking sector assets are under sanctions. I should say that despite sanctions of such level, the banks remain resilient, find opportunities to work, and they coped with these challenges,” Nabiullina noted.
It does not mean there will be no such risks in the future but it is very important in this regard for the financial stable to remain stable, the Central Bank chief said. “We are keeping a close eye on that and configure banking regulation to provide for that in the long run,” she added.
This is another example of how extraordinarily effective a Central Bank operating as a public utility model can be – also, how even seemingly excessive interest rates can be a regular doddle. The billions of dollars that in a Western-centric financial architecture, divert liquidity out of the domestic economy and… Read more »
I may be simplistic here, but to me the interest rate is the cost of money when you don’t have it, and the reward for giving it somewhere else when you do have it. So, we talk about the high interest rate crippling the Russian economy, and yet Putin spoke… Read more »
Yes Grieved, its very interesting how such a high interest rate works in Russia. Here in Australia when interest rates were that high, people just kept spending and got into huge debt.