Partial insurance of deposits will make the clients choose their banks more carefully

The experts inquired by RAPSI believe that the implementation of partial insurance (franchise) of high-profit deposits may turn out to be an efficient way to combat the excessive rates as it will make citizens assume the responsibility for choosing of the bank and not fall for offers that are too generous.

Last Thursday, Alexey Simanovsky, First Deputy Chairman of the Central Bank, informed that the Bank of Russia continues to consider implementation of partial insurance (franchise) of high-profit deposits, where the rates are above the medium market rate. He described the essence of the mechanism: if a citizen makes a deposit at a rate unreasonably higher than the medium market rate, the bank will have to inform the citizen that the insurance of the deposit will not be paid in full.

Finances without gambling

Advocate Alexander Yevdokimov, Head of Arbitration Court Practice of the Law Firm "YUST", believes that implementation of the franchise has the objective to stimulate the depositors to stop dealing with the banks, which conduct high-risk activities and attract funds against unreasonably high rates. The Advocate notes: “This means that neither the amount of the franchise, nor the “juridical” appropriateness of its implementation have any fundamental significance”.

A.Yevdokimov added: “This novelty may be useful for the depositors, as it will be a way to make them think about the correctness of their choice of the bank for placing their savings and to protect them from the consequences of excessive financial gambling”.

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