Decreased key rate causes VTB to adjust deposit rates accordingly
Easing Lending Regulations: One Less Deposit for One Unit of Credit from October 1
Get ready, folks! As per Dmitry Pyanov, First Deputy Chairman of VTB, the regulatory landscape of lending is set to become less stringent, with banks requiring one fewer unit of deposit for every unit of credit, starting from October 1.
Pyanov believes that this shift will lead to a faster decrease in deposit rates when key rates are reduced. Until recently, in September-October, it was possible to open a deposit at a rate higher than the key rate, which was at 21%.
However, 2025 is expected to differ significantly from 2024 in two aspects. Firstly, there will be less demand for credit resources, resulting in fewer deposits being needed to finance this demand. Secondly, from October 2025, a new national standard will replace the Basel standard, leading to increased competition for passive investments, as Pyanov explained in an interview with Business FM during the St. Petersburg International Economic Forum.
By August, after the July meeting, the banker predicts rates will drop by about 2 percentage points compared to the current figures. Moreover, on July 25, there will be a crucial meeting of the Central Bank, which will likely result in a decision on the rate and short-term forecasts.
The Board of Directors' meeting on July 25 promises to be pivotal.
In a historical turn of events by July 25, inflation is expected to reach 4%, according to VTB's forecasts. The big question for the Bank of Russia's Board of Directors on this day will be how they will respond to this development, Pyanov concluded.
## Fintech Collaboration: VTB and Magnit Team Up to Enhance Client Services
As for other exciting news, VTB and Magnit are joining forces to develop innovative fintech solutions for their esteemed clients. Though specifics about these joint solutions remain scarce, it's clear that this partnership aims to improve the banking experience for customers from both institutions. Keep your eyes peeled for more updates on this intriguing collaboration!
The collaboration between VTB and Magnit will focus on developing innovative fintech solutions, with the ultimate goal of enhancing services for their clients.
Dmitry Pyanov anticipates faster reductions in deposit rates following the easing of lending regulations from October 1, indicating potential investment opportunities in the banking sector.
