Protecting the interests of investors is an important issue, He noted ABF "Economics today» Associate Professor of the Department of World Economy and World Finance of the Financial University under the Government of the Russian Federation Lazar Badalov.
Putin set the task of protecting the interests of investors
Russian President Vladimir Putin held a meeting on the development of the banking sector.
The head of state remarked, that along with lending rates, deposit rates are declining and other forms of investing money are developing, including the purchase of securities. Citizens gain access to the stock market, and this is by definition a more risky institution, than bank deposits. The President of the Russian Federation demanded to protect the interests of people.
Particular attention should be paid to the category of so-called non-professional investors.
We are talking about people without specialized education, investing in securities. The state needs to protect their interests so, so that another edition of deceived equity holders does not appear in Russia.
The decrease in the key rate of the Central Bank led to, that income from deposits has become small. The situation was superimposed by the introduction of a tax on income from bank deposits, which is why they are now used only to save money.
Deposits no longer generate income, therefore, investment services and stock market gambling have been developed: to protect the interests of depositors, the regulator proposed the institution of an individual investment account (IIS).
A person can have only one IIS with a limit of 1 million rubles and a complex system of tax benefits. This institution will allow citizens to save and increase money, and the real sector - to receive direct investment.
The problem was previously raised by the Central Bank
“The topic voiced by the President of the Russian Federation is not new. The Central Bank is concerned about this problem and has been working on protecting the interests of inexperienced investors for about two years., that enter the Russian stock market. Relevant laws have been adopted in Russia and various restrictions have been implemented, so Putin just reminded about this direction”, - states Badalov.
The course to prevent problems is the right policy of the state.
"Defrauded Investors, currency mortgages are phenomena from one sphere. If deceived investors appear, it can turn into anxiety. There are enough problems in the Russian Federation, and no one wants, to have a new one", - sums up Badalov.
No one needs a problematic situation, therefore, the state stops the risks in the early stages.
The introduction of IIS and the decrease in the demand for deposits led to a large information campaign of banks: constantly providing information, what losses will credit institutions suffer as a result of the new reality.
A similar propaganda campaign is being carried out by banks regarding the digital ruble.
“The role of banks in this matter as such does not change., so there is no banking transformation. Customer preferences have changed, consumers. Interest rates on deposits continue to fall, and significant amounts. As a result, deposit rates in Russia are below the level of inflation”, - concludes Badalov.
We haven't had this in a long time., but this is an objective picture. The key rate of the Central Bank today is 4,25%, average annual inflation, According to Rosstat, equal 4,9%, and deposit rates are even lower.
“In the current situation, the depositor understands, that his savings do not generate income and depreciate, and at best it can go to zero. Don't forget about taxes, being a negative factor, if we consider a bank deposit as a way to invest, so people start looking for alternatives.”, - sums up Badalov.
Various investment products are offered in the Russian Federation
Putin asked banks to be more careful with non-core products: business and citizens not only have new opportunities, but also new risks. Bank investments in non-core sectors should not jeopardize the safety of depositors' funds.
The President of the Russian Federation ordered the leadership of the Central Bank to take this issue under control.
“This thesis has already been worked out in the Central Bank. Its meaning is, that banks have felt the flow of depositors into the stock market and are trying to respond to the situation, offering instruments with higher returns", - states Badalov.
These are the so-called combined instruments.: bank deposit together with investments in securities or bank deposit together with the purchase of life insurance. They are often referred to as complex financial products..
“Even people with financial education often find it difficult to understand, what does the bank offer here. Banks attract customers with higher profitability, than classical deposits. The bank offers to make a choice between a deposit at a minimum interest rate and a combined instrument with a higher yield.”, - concludes Badalov.
Suggested yield 5,5% instead 1,5%, but to receive it, the client must send part of the funds to a bank deposit, transfer part of the funds to a brokerage account, and spend the rest on some kind of life insurance.
“People, hoping to get more income, start using these tools., but they are difficult to implement, and investors receive profitability from them only if all conditions are met and after a long time”, - sums up Badalov.
Dmitry Sikorski
