Russian Banks Increased Investments in Securities

Investments of Russian banks in securities increased in January 2021 by 0.3 per cent and as of February 1, 2021, began to reach a record 15.74 trillion rubles, RIA News reports with reference to the press service of the Central Bank of Russia. Country banks also had equity securities in their assets at the beginning of the year for 417 billion rubles and promissory notes for 31 billion rubles. 

It is noted that the main share of investments fell on debt securities, the volume of which increased by 0.3 per cent and exceeded the historical maximum. At the same time, investments in coupon bonds of the Central Bank in January 2021 continued to decline (by 3.3 per cent). As of February 1, 2021, they amounted to 550 billion rubles which was the minimum since February 2020.

According to the Senior Director for Banking Ratings at the “Expert RA” rating agency, Vladimir Teterin, securities and other instruments with a minimum level of risk are, in particular, a liquidity management tool, therefore, depending on the rates and the state of liquidity of the banking system, different scenarios are possible of the development of the current situation.

Ru-Main, 28.02.2021 

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