Instruction No. 220 "On Short-Term Refinancing Operations"

(Dated October 14, 2016, No. 175; Dated September 27, 2019, No. 120)

Bank of Russia

The Bank of Russia, in accordance with the Federal Law "On the Central Bank of the Russian Federation (Bank of Russia)" and the Federal Law "On Banks and Banking Activity," hereby issues this Instruction to regulate short-term refinancing operations conducted by credit institutions.

Chapter 1. General Provisions

Article 1. Definitions

1. Short-term refinancing operations are financial transactions in the form of lending to credit institutions for a short term, secured by collateral:
   • government bonds;
   • corporate bonds;
   • money market instruments.
2. Short-term refinancing operations are conducted by credit institutions that have been granted the right to participate in short-term refinancing operations by the Bank of Russia, as well as non-bank credit organizations and financial companies included in the registry of participants in short-term refinancing operations maintained by the Bank of Russia.
3. Short-term refinancing operations are conducted using the Bank's information system (hereinafter referred to as "BIS") and an online interface.
4. The following terms are used in this Instruction:
   • credit institution – a bank licensed by the Bank of Russia to conduct short-term refinancing operations and included in the registry of participants in short-term refinancing operations;
   • non-bank credit organization – a non-bank financial company licensed by the Bank of Russia to conduct short-term refinancing operations;
   • financial company – a financial company licensed by the Bank of Russia to conduct short-term refinancing operations;
   • money market instruments – securities issued by the Bank of Russia and the Ministry of Finance of the Russian Federation, as well as short-term refinancing operations conducted by credit institutions in BIS (Instruction of the Bank of Russia dated September 27, 2019, No. 120);
   • government bonds – securities issued by the Bank of Russia and the Ministry of Finance of the Russian Federation;
   • corporate bonds – securities issued by credit institutions, including bonds of the Bank of Russia and the Ministry of Finance of the Russian Federation issued by credit institutions;
   • money market instruments – securities, including bonds of the Bank of Russia and the Ministry of Finance of the Russian Federation issued by credit institutions;
   • discount rate – a rate applied to short-term refinancing operations, including bonds of the Bank of Russia and the Ministry of Finance of the Russian Federation issued by credit institutions (Instruction of the Bank of Russia dated September 27, 2019, No. 120);
   • haircut – a reduction in the value of collateral used in short-term refinancing operations;
   • valuation – a process of assessing the value of collateral used in short-term refinancing operations;
   • collateral – securities used as collateral for short-term refinancing operations;
   • credit institution – a bank licensed by the Bank of Russia to conduct short-term refinancing operations;
   • non-bank credit organization – a non-bank financial company licensed by the Bank of Russia to conduct short-term refinancing operations;
   • financial company – a financial company licensed by the Bank of Russia to conduct short-term refinancing operations;
   • government bonds – securities issued by the Bank of Russia and the Ministry of Finance of the Russian Federation;
   • corporate bonds – securities issued by credit institutions, including bonds of the Bank of Russia and the Ministry of Finance of the Russian Federation issued by credit institutions;
   • money market instruments – securities, including bonds of the Bank of Russia and the Ministry of Finance of the Russian Federation issued by credit institutions;
   • discount rate – a rate applied to short-term refinancing operations, including bonds of the Bank of Russia and the Ministry of Finance of the Russian Federation issued by credit institutions (Instruction of the Bank of Russia dated September 27, 2019, No. 120);
   • haircut – a reduction in the value of collateral used in short-term refinancing operations;
   • valuation – a process of assessing the value of collateral used in short-term refinancing operations;
   • collateral – securities used as collateral for short-term refinancing operations.

Article 2. Types and Procedures for Short-Term Refinancing Operations 6. The types of short-term refinancing operations are:

• overnight;
• term;
• tender-based.

7. Short-term refinancing operations are conducted by credit institutions (tender-based and overnight) in the form of lending secured by collateral, including bonds of the Bank of Russia and the Ministry of Finance of the Russian Federation issued by credit institutions.
8. Credit institutions participating in short-term refinancing operations must submit applications through BIS.
9. The types of short-term refinancing operations are:
   • overnight;
   • term;
   • tender-based.
10. Credit institutions participating in short-term refinancing operations must submit applications through BIS.
11. Short-term refinancing operations are conducted by credit institutions participating in short-term refinancing operations.

Chapter 2. Types and Procedures for Short-Term Refinancing Operations

Article 12. Short-term refinancing operations are conducted by credit institutions participating in short-term refinancing operations.

Article 13. Money market instruments, government bonds, corporate bonds, and financial companies are used as collateral for short-term refinancing operations.

Article 14. Short-term refinancing operations are conducted by credit institutions participating in short-term refinancing operations.

Article 15. Short-term refinancing operations are conducted by credit institutions participating in short-term refinancing operations.

Article 16. Credit institutions participating in short-term refinancing operations are subject to valuation and haircuts.

Article 17. Credit institutions participating in short-term refinancing operations are subject to valuation and haircuts.

Article 18. Short-term refinancing operations are conducted by credit institutions participating in short-term refinancing operations.

Article 19. Short-term refinancing operations are conducted by credit institutions participating in short-term refinancing operations.

Article 20. Short-term refinancing operations are conducted by credit institutions participating in short-term refinancing operations.

Article 21. Short-term refinancing operations are conducted by credit institutions participating in short-term refinancing operations.

Article 22. Credit institutions participating in short-term refinancing operations are subject to valuation and haircuts.

Article 23. Credit institutions participating in short-term refinancing operations are subject to valuation and haircuts.

Article 24. Short-term refinancing operations are conducted by credit institutions participating in short-term refinancing operations.

Article 25. Short-term refinancing operations are conducted by credit institutions participating in short-term refinancing operations.

Chapter 3. Collateral for Short-Term Refinancing Operations

Article 26. The term "government bonds" refers to securities issued by the Bank of Russia and the Ministry of Finance of the Russian Federation.

Article 27. The term "government bonds" refers to securities issued by the Bank of Russia and the Ministry of Finance of the Russian Federation.

Article 28. Government bonds are used as collateral for short-term refinancing operations.

Article 29. The valuation of government bonds is conducted by the Bank of Russia.

Article 30. Government bonds are used as collateral for short-term refinancing operations.

Article 31. The value of government bonds is determined by the Bank of Russia.

Article 32. Government bonds are used as collateral for short-term refinancing operations.

Article 33. The value of government bonds is determined by the Bank of Russia.

Article 34. The valuation of government bonds is conducted by the Bank of Russia.

Chapter 4. "Government Bonds"

Article 35. The term "corporate bonds" refers to securities issued by credit institutions.

Article 36. The term "corporate bonds" refers to securities issued by credit institutions.

Article 37. The valuation of corporate bonds is conducted by the Bank of Russia.

Article 38. The valuation of corporate bonds is conducted by the Bank of Russia.

Article 39. The value of corporate bonds is determined by the Bank of Russia.

Article 40. Corporate bonds are used as collateral for short-term refinancing operations.

Article 41. Credit institutions participating in short-term refinancing operations are subject to valuation and haircuts.

Article 42. The value of corporate bonds is determined by the Bank of Russia.

Chapter 5. "Corporate Bonds"

Article 43. Credit institutions participating in short-term refinancing operations are subject to valuation and haircuts.

Article 44. Short-term refinancing operations are conducted by credit institutions participating in short-term refinancing operations.

Article 45. The term "money market instruments" refers to securities issued by the Bank of Russia and the Ministry of Finance of the Russian Federation.

Article 46. Short-term refinancing operations are conducted by credit institutions participating in short-term refinancing operations.

Article 47. Credit institutions participating in short-term refinancing operations are subject to valuation and haircuts.

Article 48. Credit institutions participating in short-term refinancing operations are subject to valuation and haircuts.

Article 49. The valuation of money market instruments is conducted by the Bank of Russia.

Article 50. Credit institutions participating in short-term refinancing operations are subject to valuation and haircuts.

Article 51. Money market instruments are used as collateral for short-term refinancing operations.

Article 52. Credit institutions participating in short-term refinancing operations are subject to valuation and haircuts.

Article 53. Short-term refinancing operations are conducted by credit institutions participating in short-term refinancing operations.

Article 54. Short-term refinancing operations are conducted by credit institutions participating in short-term refinancing operations.

Article 55. Short-term refinancing operations are conducted by credit institutions participating in short-term refinancing operations.

Article 56. The value of money market instruments is determined by the Bank of Russia.

Article 57. Credit institutions participating in short-term refinancing operations are subject to valuation and haircuts.

Article 58. Credit institutions participating in short-term refinancing operations are subject to valuation and haircuts.

Article 59. The term "money market instruments" refers to securities issued by the Bank of Russia and the Ministry of Finance of the Russian Federation.

Article 60. Credit institutions participating in short-term refinancing operations are subject to valuation and haircuts.

Article 61. Short-term refinancing operations are conducted by credit institutions participating in short-term refinancing operations.

Article 62. The value of money market instruments is determined by the Bank of Russia.

Article 63. The value of money market instruments is determined by the Bank of Russia.

Article 631. The value of money market instruments is determined by the Bank of Russia.