In Russia it is proposed to increase insurance on bank deposits

The limit of insurance compensation for long-term deposits over 3 years and irrevocable savings certificates in rubles for a period of 1 to 3 years is proposed to be increased to 2 million rubles, for irrevocable savings certificates in rubles over 3 years—to 2.8 million rubles from the current 1. 4 million rubles. At the same time, the rates of contributions to the compulsory deposit insurance fund for them may be lower than for short-term deposits and deposits in foreign currency.

The changes will help increase the attractiveness of long-term ruble savings for people, strengthen bank balance sheets, and increase the availability of long-term money for the economy.

It is also proposed to increase insurance coverage of escrow accounts to 20 million rubles (30 million rubles for the number of such accounts in one bank) to reduce the risks for apartment buyers, taking into account the rapid rise in housing prices in recent years.

Insurance premium rates are planned to be set at a level that does not change the total revenue to the compulsory deposit insurance fund. The sector's load will remain the same, while banks will have additional motivation to attract long-term ruble deposits.

Author: Sergey Nikolaev