Central Bank is ready to take to the pawnshop stocks and commercial papers

Yesterday the Central Bank reported on the adoption of the new guidance "on the list of securities included in the Lombard List of the Bank of Russia," according to which list may include "bond of legal entities - residents of Russia, including commercial papers "and" shares of legal entities - residents of the Russian Federation, non-credit organizations. "These changes in the Lombard list associated with the release of the Bank of Russia as a participant in the stock market. CB will conduct the following transactions: the sale of government securities and bonds of the Bank of Russia the sale of other securities, certain decision of the Board of Directors. Also, the implementation of the Bank of Russia operations in the open market may be buying and selling shares, but only if the commission later repurchase and sale of shares in case of failure of the counterparty to perform its obligations under such reverse transaction. As previously reported by the MICEX CEO Alexei Rybnikov, after gaining access to trading on the Stock Exchange Bank will be able to perform two types of operations: to provide refinancing secured by assets (repos), which are determined by the Board of Directors of the Bank of Russia, and selling software in the event of default counterparty. As the analyst of bank "Trust" Vladimir Bragin, "a list of shares is likely to be limited - only first-tier securities and exchange-traded bonds on the market and so little." According to him, leaving the stock market, the Central Bank will provide participants with another refinancing mechanism, and it is quite possible that he will be available to those banks that can not directly borrow from the Central Bank through repo operations. The fact that the Lombard list may not be included shares of banks, Vladimir Bragin explained by the fact that lending institutions themselves by themselves are recipients of funds from the Central Bank: the Bank could issue a share issue to buy it on its balance sheet, and gave them as collateral, to receive funding from the Central Bank. "In turn, an analyst at SG" Renaissance Capital "Nicholas Podguzov notes that today major turnover in the stock market performed in the "blue chips" and yield securities on the stock market even if only under repurchase agreements not only increase the liquidity of the shares, but also reduce the potential "fire" sales in the papers.