MOSCOW, November 2 (RIA Novosti) - The Russian banking industry has sufficient liquidity for all settlements and crediting, despite the ongoing global financial crisis, First Deputy Prime Minister Igor Shuvalov said on Sunday.
"At the current moment we understand that cash, which has been provided to the banking sector, is sufficient and the banking industry has enough liquidity to carry out both settlement operations and provide credits," Shuvalov said.
Russia has been hard-hit by the global credit crisis, which has toppled Western banks and pushed developed economies toward recession. The country's stock markets have lost around two thirds of their value since their May highpoints, amid declining oil prices and other investor concerns.
Russia's government and Central Bank have recently taken urgent measures to pump billions of U.S. dollars into the domestic financial market to shore up its liquidity.
Shuvalov urged Russian banks to provide financial aid to auto-making, the defense and industry complex, construction and retail trade.
The Russian government will review duties on the importation of cars into Russia to support domestic car makers, Shuvalov said.
"Required adjustments will be made in customs and tariff regulation so that investors implementing projects and producing cars can sell their products in Russia. This means that we'll raise duties on similar cars that are produced abroad," Shuvalov said.
Russia's Central Bank has taken measures to prevent capital outflow, Shuvalov said.
According to Shuvalov, financial aid, which the government had provided to financial institutions, was frequently converted into foreign currency and this practice hindered the provision of ruble loans to industry.
Therefore, "the Bank of Russia has made necessary decisions to prevent the conversion of these funds into foreign currency. These decisions have been published," Shuvalov said.
Russia's Central Bank said on October 30 it recommended that banks keep their average foreign asset balances in November-December at a level consistent with the period of August 1- October 25.
"The Central Bank will take into account the results of credit institutions' compliance with this recommendation at its unsecured loan liquidity auctions," the top monetary regulator said in its October 28 report, published on its website.
