The Central Bank proposed reducing insurance premium rates on long-term deposits by half

The Central Bank proposes to halve the rates of insurance premiums on long-term deposits and irrevocable certificates. This was announced by the head of the Bank of Russia, Elvira Nabiullina. The insurance limit for irrevocable savings certificates is planned to be set at RUB 2.8 million.

“We propose to halve the rates of insurance premiums for long-term (from 3 years) deposits and irrevocable certificates. Together with the upcoming tightening of regulation of banks’ balance sheet risks – liquidity, interest rate risk – this may have an effect,” said the head of the Central Bank at the congress of the Association of Russian Banks.

In addition, as the head of the Central Bank reported, the regulator supports the proposal to exempt long-term deposits from taxation in order to make them more popular. However, as Elvira Nabiullina noted, it is important to ensure that “there are no distortions in motivational measures for “long” deposits compared to the capital market.”

A long-term deposit is a deposit that is opened for several years. At the same time, until the expiration of the deposit, the money can only be used on unfavorable terms (without a significant part of the accrued interest).

How Elvira Nabiullina explained the continued rigidity of PrEP – in the material “High Stakes Conversation”.

Anastasia Larina