In execution of clause 3 of the Federal law "On the Central Bank of the Russian Federation (Bank of Russia") and under clauses 4, 35, 36, 37, 40, 43, 46 and 47 of the mentioned Federal Law, Bank of Russia, as the lender of last resort, organizes the system of refinancing (lending) of credit institutions, establishing the procedure and conditions of refinancing by carrying out operations of refinancing of credit institutions, regulates liquidity of banking system and the right of credit institutions to apply to the Bank of Russia for loans gained to provide credits to clients and fulfill their commitments in conditions of lack of liquidity under the cause 28 of the Federal law "On Banks and Banking Activities". The refinancing operations are conducted under the agreements concluded between the Bank of Russia and the credit institutions in compliance with sections 23, 28 42 and 45 (clause 850) of the Civil Code of the Russian Federation and the Federal Law "On Banks and Banking Activities". The refinancing procedure is described in two documents: , dated August 4, 2003, "On the Procedure for Extending Bank of Russia Loans on securities to Credit Institutions" (hereinafter - Regulation No. 236-P) and , dated November 12, 2007, "On the Procedure for Extending Bank of Russia Loans to Credit Institutions Secured by Assets or Guarantees" (hereinafter - Regulation No. 312-P).

   Bank of Russia Secured Loans can be divided into two groups depending on a type of collateral: loans secured by marketable assets (eligible securities for the Bank of Russia Lombard List, loans secured by non-marketable assets (promissory notes issued by the companies from the real sector or their credit claims) or credit institutions' guaranties.

Types of the Bank of Russia loans and conditions of lending

Loan Term Possibility of advanced repayment Interest rate (p.a.) Collateral Date of loan exention Regulation
- -
Bullions of gold allocated in Bank of Russia safe vault
1 working day -
Bullions of gold allocated in Bank of Russia safe vault
1 calender day -
7 calender day no
3 months
12 months
Loans secured by non-marketable assets or guarantees up to 90 calender days yes* 7.25% Pomissory notes, credit claims or guarantees
from 91 to 180 calendar days 7.75%
from 181 to 365 calendar days 8.25%
Loans secured by Gold up to 90 calender days yes* 7% Bullions of gold allocated in Bank of Russia safe vault Regulation No. 362-P
from 91 to 180 calendar days yes* 7.5%
from 181 to 365 calendar days 8%

* Notification to the Bank of Russia is required in advance.

Bank of Russia lending volumesReference information: use of the Bank of Russia intraday loans by credit institutions grouped by authorized capital

Month/year Intraday loans Overnight loans Lombard loans Loans secured by non-marketable assets and guarantees Loans secured by gold
1 2 3 4 5 6
Total year 2004 3,051,870.5 30,262.7 4,540.8 - -
Total year 2005 6,014,025.0 30,792.0 1,359.0 - -
Total year 2006 11,270,967.5 47,023.5 6,121.4 - -
Total year 2007 13,499,628.1 133,275.9 24,154.5 32,764.5 -
Total year 2008 17,324,352.8 230,236.1 212,677.6 445,526.2 -
Total year2009 22,832,687.5 311,423.6 308,848.5 2,419,364.7 -
Total year2010 28,359,579.5 229,939.6 74,993.0 334,557.0 -
2011
January 1,746,207.3 14,937.3 1,192.5 2,169.6 -
February 2,770,757.3 18,602.3 1,138.6 479.4 -
March 2,733,668.5 24,286.1 5,283.5 1,427.5 -
April 3,006,648.2 22,315.2 3,082.5 172.8 -
May 2,796,370.9 20,196.9 3,134.5 427.3 -
June 3,003,097.9 16,247.6 6,999.6 174.2 -
July 2,677,438.0 14,444.1 2,265.5 459.7 -
August 3,086,865.6 16,561.1 6,009.7 318.9 -
September 3,327,252.0 20,348.4 13,606.5 1,103.4 -
October 4,029,579.4 15,244.5 22,675.6 81,587.0 -
November 4,492,860.8 11,201.4 24,095.1 22,408.0 19.00
December 4,518,495.0 14,576.1 23,259.0 320,582.8 -
Total year2011 38,189,240.89 208,961.12 112,742.68 431,310.64 19.00
2012
January 2,511,215.44 12,478.34 8,062.70 238,842.20 1.00
February 3,397,925.58 7,234.89 11,705.20 21,776.00 -
March 3,988,929.53 12,349.93 15,307.10 48,117.08 200.00
April 3,972,719.68 5,037.76 14,494.60 11,963.85 655.00
May 4,394,272.71 20,505.78 24,652.22 46,226.90 298.00
June 4,947,974.67 18,927.98 20,145.65 377,234.01 19.00
July 4,581,811.66 6,029.10 13,152.80 93,681.45 280.00
August 4,328,801.75 10,677.34 16,991.90 183,328.17 40.00
September 4,468,667.14 2,604.92 14,689.90 124,046.95 133.00
October 5,297,236.98 16,179.53 21,436.00 102,443.98 76.00
November 4,970,538.29 18,828.80 21,723.20 93,197.53 272.00
December 5,813,573.21 41,429.19 28,866.20 179,510.79 176.00
Total year2012 52,673,666.64 172,283.56 211,227.47 1,520,368.91 2,150.00

    Information sources concerning credit institutions' refinancing (lending)

    Bank of Russia Bulletin: Monetary Policy: The Monetary Situation and Monetary Policy Implementation (published quarterly);

Guidelines for the Single State Monetary Policy: Section IV.3. Monetary Policy Instruments and their Application;

Bank of Russia Annual Report: Section II. Bank of Russia Activities, II.1. Monetary Policy

The Bank of Russia extends intraday and overnight loans to credit institutions automatically and Lombard loans on request (an application for a loan at a fixed rate or an application for participation in a Lombard loan auction).

Reference information: use of the Bank of Russia overnight and Lombard loans on securities by credit institutions grouped by authorized capital

    Intraday loans are extended to credit institutions free of charge, while overnight loans for the purpose of repaying the debt on intraday loan that remains unrepaid by the end of the day are extended at the Bank of Russia overnight interest rate. At present the Bank of Russia guarantees credit institutions the transfer of intraday and overnight loans to their correspondent accounts or sub accounts opened in the settlement system of the Bank of Russia divisions of all Regional Branches and National Banks of the Bank of Russia that process payments electronically.

    Bank of Russia Lombard loans may be extended at a fixed rate or by auction and transferred to any bank accounts (correspondent account and/or sub accounts) of a credit institution opened in any Regional Branches or National Banks of the Bank of Russia or in authorized non-bank credit institutions.

Reference information: credit institutions' number of correspondent accounts/sub accounts, on which credit institutions have a right to raise Bank of Russia loans according to the Bank of Russia Regulation No. 236-P.

Lombard loan auctions are held on schedule. Lombard loans are extended at the following day after the auction. Credit institutions may make both competitive and non-competitive bids for an auction, although the share of non-competitive bids in total bids is limited by the Auction Rules.

   The Bank of Russia extends Lombard loans at fixed rates to enable credit institutions efficiently manage their liquidity when using the averaging mechanism to required reserve. A Lombard loan is extended to a credit institution at the day it asks.

    For extending Lombard loans the correspondent account opened in authorized non-bank credit institution, the credit institutions submit application forms for participation in Lombard credit auction/application on raising the Lombard loan at a fixed interest rate by using electronic trading system of Joint-Stock Company of the Moscow Interbank Stock Exchange (hereinafter - MICEX electronic trading system) according to the Rules of making transactions with credit institution with use of electronic trading system MICEX concerning deposit and credit operations by the Bank of Russia (approved by Board of directors of MICEX dated 12 of May 2006, coordinated with the Bank of Russia 29.05.2006).

    Lombard loans' extension at a fixed rate depends on MICEX trading sessions, at submission of applications to MICEX electronic trading system in the first session (till 12-00 Moscow time) credits are extended - by 15-00 Moscow time, at submission of applications to MICEX electronic trading system in the second session (till 17-00 Moscow time) - credits are extended by 20-00 Moscow time.

    Notices of extending the Bank of Russia loan on securities to the correspondent account opened in authorized non-bank credit institution are represented to the credit institutions by the Regional Branches and National Banks of the Bank of Russia at the place of keeping the correspondent account of the credit institution-borrower.

    The collateral of intraday credits, overnights and Lombard credits is pledging (blocking) of securities meeting the following requirements:

    1.Issue is included to the Bank of Russia Lombard List. Reference information: the minimum ratings of issuers (issues) of securities included to the Bank of Russia Lombard List are