21 Oct 2009 13:18

CB not planning special restrictions on bank rate policy

MOSCOW. Oct 21 (Interfax) - The Central Bank of Russia is not planning special restrictions to regulate interest policy at commercial banks, CB First Deputy Chairman Alexei Ulyukayev said on the sidelines of the UBS investment conference.

"I think that banks are entitled and obliged to assess their own risks and formulate their own rate policy accordingly. Otherwise we'd be forcing them to assume risks that are alien to them, and that would be dangerous," Ulyukayev said.

He said the CB would be very cautious, and intended to explain the risk of high deposit and credit rates to banks, conducting verbal interventions, so they come to realize that high rates hold no promise and threaten to undermine their financial position.

"We'd not like to talk about administrative restrictions," he said.

Regarding a statement by Sergei Stepashin, head of the Audit Chamber, that the Chamber would revoke bank licenses, Ulyukayev said the Law on the Audit Chamber did not grant the agency the right to issue licenses to banks or, consequently, to revoke them.