DIA informs CB about banks engaged in excessive deposit raising
MOSCOW. May 18 (Interfax) - Russia's Deposit Insurance Agency (DIA) has informed the Central Bank of Russia about 25 to 30 banks currently engaged in excessive and aggressive raising of deposits, the agency's deputy general director, Andrei Melnikov, told journalists on the sidelines of the forum Retail Banking Services in Russia organized by the Adam Smith Institute in Moscow on Moscow.
"We are informing the Bank of Bank about our observations of these banks, which have very aggressively started up with high rates in the first quarter of this year. This gives definite cause to administer these risks," he said.
At the forum, Melnikov said that around 25 to 30 banks have been engaged in aggressive and excessive raising of deposits in the quarter. Deposit growth rates at these banks have reached up to 700% in some cases. Therefore, these banks have raised 500 million-1.5 billion rubles each from individual clients in the period.
Melnikov said that the DIA has been worried about the situation at these banks. "The banks actively raised 500 million-1.5 billion rubles for the quarter by employing an aggressive interest policy. This can't help but bother us," he added.
He added that the DIA paid out insurance claims to deposit-holders in Multibank. "We've had a somewhat sad experience with Multibank, which raised 1.5 billion rubles in deposits and later forced us to pay quite a large amount in insurance claims," Melnikov said
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