February 1, 2018 / 4:22 PM / 6 months ago

Russian central bank to demand higher provisions for M&A deals

ROSTOV-ON-DON, Russia, Feb 1 (Reuters) - The Russian central bank plans to demand higher provisions from banks if they lend for merger and acquisition deals, Central Bank Governor Elvira Nabiullina told a government meeting in the southern Russian city of Rostov-on-Don on Thursday.

She said the central bank was currently discussing the new provisioning requirements with banks, which would allow for lower provisions for loans aimed at developing the industrial sector and not the M&A deals.

Nabiullina also said the central bank wanted to extend the deposit insurance system to depositors from small and medium enterprise sectors. She added that the emergence of a bubble in consumer lending should be avoided. (Reporting by Denis Pinchuk; Writing by Gabrielle Tétrault-Farber; Editing by Katya Golubkova)

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