Central Bank instruments can cover 2014 liquidity deficit - CBR
MOSCOW. Nov 7 (Interfax) - Central Bank of Russia instruments are enough to cover the growing liquidity deficit in 2014, Igor Dmitriev, the director of the Central Bank's monetary-financing policy department, said at a conference organized by the Association of Russian Banks in Moscow Thursday.
"Central Bank refinancing capabilities correspond with the needs of the banking sector right now. In the future, next year, the liquidity deficit will continue to grow but the instruments we have are enough to cover it," he said.
Asked about reduced refinancing of banks under guarantee from other banks, Dmitriev said "the Central Bank has not fully ruled out the possibility of using refinancing under guarantee."
However, guarantees crate certain risk, he said. "Banks open liabilities for one another and if there is some negative event a wide network of mutual guarantees could turn an individual problem into a systemic one. That is why it was decided not to allow this type of provision to be used widely," he said.