OREANDA-NEWS. October 27, 2008. Thus, LOCKO-Bank became one of the 120 banks that were granted access to CBR’s liquidity in a form of unsecured loans. The first auction was held on October 20, 2008 and the amount of liquidity offered to the banks was RUR 700 bln. with five weeks maturity with 8.5% minimum interest rate, reported the press-centre of LOCKO-Bank.

Since the beginning of the crisis LOCKO-Bank has not experienced liquidity issues and has been performing all its obligations, when due. Moreover, the bank has been a net lender on the money market. Balances on customer accounts are stable and there has not been any significant cash outflow.

The prudent liquidity management in the current volatile markets is illustrated by a comfortably high liquidity position with liquid assets comprising more than 18% of total assets. In a long run, the unsecured limit from the CBR will provide additional liquidity support to LOCKO-Bank during the ongoing financial crisis.

Earlier on Friday, October 17, 2007 the CBR officially announced new measures designed to support liquidity in the banking sector as well to stabilise situation in the local money market. The Regulator set up an unsecured lending facility to 120 banks with ratings B-/B3 and above (Fitch/Moody’s).

The limits range from 50% to 150% of the individual bank’s capital. The amount of liquidity offered to the banks is set at around RUR 700 billion for the next five weeks.