The Bank of Russia took a decision to introduce from 1 September 2017 an additional mechanism of liquidity provision. Banks experiencing temporary liquidity problems, will be able to apply for them in case of exhaustion of other sources of funding, including in the framework of the standard instruments of the Bank of Russia said in a press release of the regulator.
A new mechanism created by analogy with the widespread in the international practice by the mechanism of emergency liquidity provision (MEPL). The Bank of Russia will make the decision on the provision of Bank funds under the MEPL, given its financial stability and systemic importance.
For consideration by Bank of Russia of a question on granting of liquidity in the MAPLE Bank makes an application to the division of the Bank of Russia, exercising supervision over the activities of the Bank. To the request of the Bank, in particular, should provide information on the causes of needs in MAPLE as well as forecast schedule of inflows and outflows of funds over the estimated term of attraction of liquidity, indicating the Bank’s ability to solve problems (“exit strategy” from MAPLE). In addition, the Bank provides information about available software, which he plans to use in the framework of MAPLE. The composition of such security is wider than on the standard tools of attracting liquidity from the Bank of Russia, and includes securities that are not included in the Lombard list of the Bank of Russia claims on credit agreements, other types of values and guarantees of third parties, with the exception of credit institutions.
The Bank of Russia on the basis of the evaluation of the provided information and analysis of the situation with the Bank promptly decides about the possibility of providing it with liquidity in the framework of MAPLE. Depending on the reported by the Bank ensure that provision of funds may be effected including in the form of REPO transactions and/or secured loan.
Cash within the MAPLE will be given in rubles for a period not exceeding 90 calendar days. The rate of disbursement will be equal to the current in the time of the transaction, the key rate of the Bank of Russia increased by 1.75 percentage points.