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Banks in temporary difficulty will be able to continue attracting individual deposits
Practical Law UK Legal Update 1-500-4993 (Approx. 2 pages)
Banks in temporary difficulty will be able to continue attracting individual deposits
by White & Case LLP
| Published on 13 Sep 2013 • Russian Federation |
This article is part of the PLC Global Finance September e-mail update for the Russian Federation.
Speedread
On 27 September 2009, the President signed a new law suspending until 31 December 2010 certain rules that set out the eligibility criteria banks must meet to be allowed to hold deposits from individuals.
On 27 September 2009, the President signed Federal Law No. 227-FZ suspending certain rules of Federal Law No. 177-FZ "On the Insurance of Individual Bank Deposits in the Russian Federation," dated 23 December 2003.
The Law entered into force on 29 September 2009.
Law No. 177-FZ lists instances when a bank will not be eligible to participate in the system of mandatory insurance of individual bank deposits. The Central Bank must ban such banks from attracting deposits.
The Law has suspended certain rules which set out the ineligibility criteria (for example, the bank's failure to comply with mandatory economic ratios, its "unsatisfactory" profitability, and so on) until 31 December 2010.