The State Duma, the lower house of Russia’s parliament, has adopted in the second and third readings a bill enlarging deposit insurance from 700,000 to 1.4 million rubles. Respective amendments have been inserted to the law on insuring private individuals’ deposits with banks in Russia and to the law on the Central Bank of Russia. Earlier the lower house passed in the final readings several amendments aimed at stabilizing the Russian banking system. Pursuant to them, up to 10 percent of the National Wealth Fund can be invested in the deposits or securities of banks with capital not less than 100 billion rubles ($1.7bln). The national Deposit Insurance Agency will be allocated about 1 trillion rubles ($16.8bln) for increasing the authorized capital of strategic banks. The Finance Ministry supposes this will be enough to boost the capital of the national banking sector by 13 percent. Funds will be primarily provided to strategic banks. Earlier Sberbank, Russia’s largest bank, reported an outflow of funds from deposits made by individuals due to the rapid depreciation of the ruble. On Friday, Sberbank announced that this trend has receded.
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