Russian Central Bank's role growing

The Russian Central Bank will not have any difficulties complying with the law on insurance of individual deposits of up to 100,000 rubles (29 rubles is approximately $1), the bank's chairman, Sergei Ignatyev, announced on Thursday. With its annual profit of about 40 billion, payments of some tens of millions will be almost unnoticed. When speaking at the Federation Council (the Russian parliament's upper chamber), Mr. Ignatyev said that the banking crisis was over because of his efforts. The impressed senators passed the bill unanimously. Experts, however, do not share their optimism and expect another wave of the banking crisis in August.

The senate unanimously endorsed the bill, under which the Central Bank is required to guarantee deposits of up to 100,000 rubles from absolutely all bankrupt banks. Another adopted document will allow the bank to monitor the rates the banks offer for deposits. If they are suspiciously high, the bank will be able to reduce the rate. In other words, banks will no longer be able to attract customers by high interest rates if they do not have enough resources, Izvestia explained.