Banking market confidence crisis will not be resolved with monetary policy moves - Yudayeva
MOSCOW. Dec 11 (Interfax) - The crisis of confidence on Russia's banking market cannot be resolved with monetary policy measures, and banks have to improve asset quality, Central Bank first deputy chief Ksenia Yudayeva said at the ninth international REPO forum on Wednesday.
"When we really have an unfounded crisis of confidence, the role of the creditor of last instance is very large. But if we're talking about a problem that arises due to suspicions, then a bank has many bad assets, and here the problem will not be resolved with monetary policy measures. I would like to direct the banking community's attention to this - [you] need to engage in the improvement of asset quality," she said.
In normal conditions, the Central Bank provides the market with liquidity, "if we are dealing with a certain short-term flu epidemic," Yudayeva said. However, this makes it possible to "more quickly ease the symptoms than to treat the illness," she said.