What to pay for high interest rates on deposits

Banks Finansy29-05-2009 How to pay for high interest rates on deposits of the Russian Central bothered by the fact that many Russian banks in recent months started to offer very high returns on deposits for the population. Bankers and really seemed to have joined the bidding race - promises to return in 18-20% of the deposit is no surprise. Central Bank chairman Sergei Ignatiev on banking forum in St. Petersburg, said that in the near future, his department may begin to punish excessively high interest rates on deposits. "Maybe now we'll do it, because bidding is a serious problem" - he said. Fears mega groundless. Due to lower refinancing rate (from 13% to 12%) interest rates can also be reduced. As a result, income from loans (including the growth of non-payment of natural persons) can disperse the costs of attracting deposits. Tools to intervene in the situation in the Central Bank is. According to the amendments to the Law on Deposit Insurance in October 2008, the Central Bank has the right to limit the rate for deposits of natural persons, if the bank fails to comply with orders to eliminate violations and if those violations pose a threat to the interests of depositors. The banks - their interest. Last year, the aggressive marketing steps they tried to compensate for the strong outflow of deposits that was triggered by rumors of a banking crisis. Panic depositors caused the death of several dozen banks.