Bank of Russia updates Lombard List of eligible bonds

The Bank of Russia's updated Lombard List details a comprehensive range of debt instruments eligible for its refinancing operations.

This includes bonds issued on behalf of the Russian Federation, encompassing both domestic and international placements, ensuring broad eligibility for government-backed securities.

The list further extends to bonds from numerous regional and municipal governments across Russia, such as Moscow, Saint-Petersburg, and the Novosibirsk Region, solidifying collateral options for local government financing.

A significant segment is dedicated to mortgage bonds, predominantly from LLC «DOM.RF MBS SPV», highlighting the housing finance sector's role in the central bank's collateral framework.

Additionally, the list incorporates bonds from various resident legal entities, spanning credit institutions and a diverse set of non-bank organizations.

This extensive inclusion facilitates liquidity access for a wide spectrum of market participants, underpinning the stability of the financial system by providing varied collateral options.

The Lombard List serves as a critical operational tool for the Bank of Russia, enabling it to conduct monetary policy by providing liquidity to credit institutions.

By defining the types of securities acceptable as collateral, the central bank manages the risk associated with its refinancing operations and ensures the smooth functioning of the money market.

Regular updates to this list are essential to reflect changes in the financial landscape, including new bond issuances and evolving market conditions.

This mechanism is fundamental for maintaining financial stability, allowing banks to manage their short-term funding needs effectively.

It ensures the central bank can inject or withdraw liquidity as required to achieve its monetary policy objectives, while the breadth of eligible assets helps prevent concentration risks.