MosPrime

What is MosPrime Rate?

The MosPrime Rate, also known as the Moscow Prime Offered Rate, serves as a benchmark within the Russian money market, indicating the rate at which leading commercial banks grant and raise Russian Ruble loans or deposits. Calculated according to interest rates set by these banks on various loan and deposit products, the MosPrime Rate encompasses different tenors, ranging from overnight to several months. The MosPrime indicator provides an index value for granting Russian Ruble loans or deposits for specific durations, with rates calculated starting from tomorrow, except for the overnight rate. This benchmark reflects the prevailing conditions in the Russian money market, facilitating efficient capital allocation and risk management for banks on loans and deposits, including those for overnight transactions.

We inform you that, in accordance with the previously adopted decision of the Bank of Russia and in agreement with the Expert Council of the NFA on indicators and rates, June 30, 2023 is the last date for calculating the MosPrime Rate. 

The Role of the National Finance Association in MosPrime Rate Calculation

The National Finance Association plays a fundamental role in the calculation of the MosPrime Rate, overseeing a meticulous process that ensures the accuracy and reliability of this benchmark within the Russian financial system. Established in 1996, the Association assumes the responsibility of coordinating and managing the compilation of data from a designated group of contributor banks. Through this systematic approach and financial instruments, it ensures that the MosPrime Rate reflects an accurate representation of the prevailing interest rates within the Moscow money market.

Furthermore, the Association's involvement extends beyond mere oversight, as it actively reviews and updates the list of contributor banks on an annual basis. This iterative process underscores the commitment to maintaining the integrity and relevance of the MosPrime Rate, aligning with international standards of financial transparency and accountability. As a result, market participants and stakeholders can place their trust in the MosPrime Rate as a reliable barometer of the Russian money market's dynamics.

Contributor Banks and Their Impact on MosPrime Rate

The MosPrime Rate relies on a select group of contributor banks whose input significantly influences its calculation and subsequent determination. These banks, carefully chosen by the National Finance Association, represent key players within the Russian financial landscape, contributing their insights into the prevailing interest rates on loans and deposits denominated in Russian Rubles. Their collective offerings serve as the foundational data upon which the MosPrime Rate is constructed, encompassing various tenors ranging from overnight to several months. The impact of these contributor banks extends beyond mere data provision, as their participation underscores a commitment to ensuring the accuracy and reliability of the MosPrime Rate.

Types of MosPrime Indices

1. MOSPRIME O/N. This index reflects the overnight rate, indicating the interest rate for loans or deposits with a duration of one day, starting from the following business day.

2. MOSPRIME 1W. Representing the one-week tenor, this index signifies the interest rate for loans or deposits with a duration of one week, commencing from the next business day.

3. MOSPRIME 2W. Reflecting the two-week tenor, this index denotes the interest rate for loans or deposits with a duration of two weeks, starting from the subsequent business day.

4. MOSPRIME 1M. Signifying the one-month tenor, this index represents the interest rate for loans or deposits with a duration of one month, beginning from the following business day.

5. MOSPRIME 2M. Indicating the two-month tenor, this index signifies the interest rate for loans or deposits with a duration of two months, commencing from the next business day.

6. MOSPRIME 3M. Reflecting the three-month tenor, this index denotes the interest rate for loans or deposits with a duration of three months, starting from the subsequent business day.

7. MOSPRIME 6M. Representing the six-month tenor, this index signifies the interest rate for loans or deposits with a duration of six months, commencing from the following business day.

Significance of MosPrime rate

1. Benchmark Nature. MosPrime Rate serve as benchmark interest rates within its respective financial systems and is specific to the Russian money market.

2. Geographic Focus. The MosPrime Rate primarily focuses on the Russian financial landscape, reflecting the interest rates at which leading commercial banks grant and raise loans or deposits denominated in Russian Rubles within the Moscow money market.

3. Calculation Methodology. The MosPrime Rate is calculated based on the offerings of a select group of contributor banks, encompassing various tenors ranging from overnight to several months.

4. Impact on Borrowing and Lending. The MosPrime Rate play significant roles in shaping borrowing and lending activities within the market. Changes in this benchmark rate can influence the cost of credit for consumers and businesses, impacting spending, investment, and overall economic activity.