Russian Banks Paying Most for Ruble Deposits Since July 2010

Russian banks are paying the most on ruble deposits since July 2010 as tighter liquidity conditions lead to higher funding costs.

The 10 biggest deposit takers boosted their top rates to an average of 9 percent in the second 10-day period of November, compared with 8.93 percent in the first 10 days, the Moscow- based central bank said today on its website.

The rate has surged 1.12 percentage points since the middle of July, the data show, and passed the 9 percent threshold for the first time since July 2010. OAO Sberbank, Russia’s largest lender, raised rates on deposits by as much as 1.3 percentage points, it said in a Nov. 1 statement.

The three-month MosPrime, the average rate banks charge each other for rubles, has risen 251 basis points, or 2.51 percentage points, to 6.82 percent since the end of July, data compiled by Bloomberg show.

To contact the reporter on this story: Scott Rose in Moscow at rrose10@bloomberg.net

To contact the editor responsible for this story: Balazs Penz at bpenz@bloomberg.net

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