The deputies are going to require banks to clearly and in large print to inform depositors about the minimum guaranteed rate contracts on the Deposit. Now the same measure is valid in the consumer Finance sector. According to market participants, such action will prevent the banks to conduct marketing promotions that could mislead the investor, but also will promote the development of less profitable but more flexible savings accounts.Monday, July 22, the state Duma was introduced the bill, which describes how banks should inform customers about the Deposit conditions. One of its authors, the head of the Duma Committee on financial market Anatoly Aksakov explained that “the ultimate goal of the bill — that the investor knew what he signed”. According to him, sometimes the investor is promised a high rate of interest, and then when he signs the contract, it appears that these high rates were due to certain conditions.In addition, the bill proposes to establish a tabular form of the Bank Deposit contract, and to ensure the disclosure of key information for the investor at the stage of conclusion of the contract. The Bank of Russia indicate that the introduction of such approaches in the market of consumer crediting “allowed to increase the awareness of borrowers and simplify the ability to compare offers from different lenders.”If we’re going to be ideal from the point of view of supervision, but will not be the inevitability of punishment, the risk of fraud and violations of the rights of creditors and investors octanediamine note that now there is an information letter of the Bank of Russia on the minimum guaranteed rate. “The market innovation should not have a significant impact, as most deposits do not contain terms of higher interest rates if you meet certain requirements unlike savings accounts, and banks are adopting the information about guaranteed minimum rate now,” explains the head of Department of development of Deposit products of MKB Yulia Alekseeva.As recalled by the Director on Bank ratings “Expert RA” Ivan Uklein in 2018-2019 with the decline of the attractiveness of interest rates on Bank deposits number of credit institutions offered alternative products with higher profit margins. For example, deposits with the simultaneous purchase or investment policies of life insurance, the rate increase after the transfer of a pension or shopping for a certain amount. “Most banks did not hide, but, as a rule, do not advertise that the high rate is only available when certain conditions are met. However, the share of such products in the banking market was limited,” he says.Exp��mouths noted that the large scale violations of the rights of borrowers on ordinary deposits not observed. Therefore, the head of the onf project “For the rights of borrowers” Eugene Lazarev believes that the special importance referred to in the bill measures will be in respect of a variety of special holiday deposits and seasonal offers, as well as multi-currency deposits. Implementation of the measures specified in the project will help to avoid misinformation of the depositors, she said. In VTB say that this measure will protect customers from unscrupulous players in the financial market. According to the Deputy Chairman of the Board Absolut Bank Anton Pavlov proposed action “may affect those contributions, where the bet size varies depending on the period of the so — called deposits-stairs, where the rate is not fixed for the entire term— in this case, banks will not be able to specify marketing rate, and will write minimal.””The client will be obvious that with a small difference in the yield they give much greater freedom of control placed by the funds”,— says the Chairman of Board of Bank “Russian standard” Aleksandr Samokhvalov.Maxim Builov, Olga Cherenkova
