Central Bank may begin reducing bank access to unsecured loans
MOSCOW. Sept 29 (Interfax) - The Central Bank of Russia may begin to reduce bank access to unsecured loans before the end of the year, Central Bank First Deputy Chairman Alexei Ulyukayev told journalists on Tuesday.
"We would like to de-stimulate bank participation in the unsecured loan auctions. It's an exotic instrument not often used by central banks. It was introduced during the crisis. It has played out its role," he said.
The bank will dampen interest in the auctions via interest rates and reductions in the limits available to individual banks, he said.
In comments on the interest rates on the unsecured loans, Ulyukayev said they would decline more slowly than on other instruments the Central Bank uses to provide liquidity.