Central Bank uncovers significant shortcomings in formation of MosPrime rate - Yudayeva
MOSCOW. April 22 (Interfax) - The Central Bank of Russia has uncovered significant shortfalls in the formation of the MosPrime rate, First Deputy Central Bank Governor Ksenia Yudayeva said at the National Securities Market Association's Financial Stability Forum.
"Recently the department of financial stability [of the Central Bank] held an audit of one of the most widespread and most used internal reference pricing indicators by banks - MosPrime. Significant shortfalls were uncovered for the entire spectrum of forming this indicator. It is necessary to improve the internal technology used by bank contributors, as well as interaction processes of contributors with the settlement agent, the administrator, and control procedures," Yudayeva said.
She called on the National Securities Market Association to pay attention to this problem.
"It is necessary to further improve benchmark rates, and above all, with timeframes of one, three and six months," she said.
MosPrime Rate (Moscow Prime Offered Rate) is an independent indicative rate for providing ruble-denominated loans (deposits) on the Moscow money market. This indicator is formed by the National Foreign Exchange Association on the basis of rates of providing ruble-denominated loans (deposits), announced by banks and leading participants on the Russian money market to first-class financial organizations with timeframes of overnight, one week, two weeks, one, two, three and six months. The timeframe for lending is calculated from the date of tomorrow, except for overnight rate. The settlement partner of the National Foreign Exchange Association is Thomson Reuters.