OREANDA-NEWS. November 17, 2009. The Bank of Russia has adopted a decision to cut effective February 1, 2010 credit risk limits and hike minimum creditability rating levels assigned by three national rating agencies to receive collateral-free loans, the regulator said. The Bank of Russia launched collateral-free lending in autumn 2008 during the crisis in order to improve liquidity in the banking system.

“We have tightened terms by cutting limits for each group of banks and adjusted the rating level. As a result, a number of banks will not be eligible for auctions starting February 1”, First Deputy CBR Chairman Alexei Ulyukaev said. According to him, at present, over 230 banks are eligible to bid at auctions.

“Potentially, new measures will affect 70 banks”, Ulyukaev said. CBR is set to encourage banks to gradually decrease the proportion of collateral-free loans and switch to collateral lending. “Until now, we have done that that using the pricing without rate cuts for collateral-free loans and now we’re limiting access”, Ulyukaev said. CBR does not expect liquidity deterioration.