Central Bank official meets with bankers

The situation around Sodbusinessbank has caused a wave of nervousness, Russian Central Bank Senior Deputy Chairman Andrey Kozlov declared after a meeting with bankers in the Association of Russian Banks today.

On May 4, many banks started closing loan limits for each other on the interbank market. Kozlov said that the Central Bank had not instigated this nervous situation and was not planning to do so. There were some fluctuations on the interbank market last Friday, he admitted. However, the official added that if liquidity decreased on the market, the Central Bank would refinance the banking system. He stressed that there had been no drop in liquidity last Friday.

Representatives of 25 Russian banks took part in the meeting in the Association of Russian Banks today. The main idea they wanted to share with the public was that there was no evidence of a system crisis in the Russian banking system.