In January, the dynamics of Russian indices was in line with trends on world markets

The first half of January was positive for the Russian financial market. Quotes in most of his segments were growing on the background of positive dynamics of world markets. However, the outbreak of coronavirus infection in the second half of the month led to lower demand for risky assets in international markets and the fall in oil prices, which was reflected in the Russian market, noted in the next issue of the review “the Liquidity of the banking sector and financial markets”.

A structural surplus of liquidity increased, helped by the decline in cash in circulation and the flow of funds via the budget channel.

The spread of rates MBK to the key rate of the Bank of Russia has not changed significantly. Maintaining a relatively wide spread is due to liquidity inflows and increased demand for borrowing by the Federal Treasury operations. Rates in the segment of “currency swap” remained mainly near loans / borrowings on the background of the conservation of foreign exchange liquidity in the banking sector at a comfortable level.

In December 2019, the mortgage interest rate renewed its historical minimum. In the retail segment of the credit market continued to decline in activity due to the continued slowdown in consumer lending, which contributed to the tightening of requirements for borrowers in the fourth quarter of 2019. In November 2019 renewed decline in interest rates in the segment of long-term corporate loans.

14 Feb 2020