On 3 November 2009, the Central Bank issued Directive No. 2324-U amending Instruction No. 110-I "On Mandatory Economic Ratios for Banks," dated 16 January 2004.

The Directive will enter into force on 1 July 2010.

The Directive amends, among other things, the rules on calculation of a bank's net worth (capital) ratio (N1) by both:

The amendments seek to implement Basel II regulations.

In particular, credit claims against, and guarantees by, foreign central banks, governments or banks will be assessed based on the Country Risk Classifications of the Participants to the Arrangement on Officially Supported Export Credits (as opposed to the "developed country" criterion currently used). Information on such Classifications will be published on the Central Bank's website.

Following these amendments, the reference to "developed country" was similarly changed in a number of other Central Bank regulations, specifically: Directives Nos. 2321-U, 2322-U and 2323-U, dated 3 November 2009, amended Regulation No. 313-P on calculation of a market risk amount and Regulations Nos. 283-P and 254 P on the provisions for potential losses, respectively.

On 3 November 2009 the Central Bank issued Regulation No. 346-P "On the Procedure for Calculation of an Operational Risk Amount."

The Regulation will enter into force on 1 July 2010.

The Regulation sets out the procedure for the calculation of an operational risk amount to be included in the calculation of a bank's net worth (capital) ratio (N1).

The operational risk amount will be calculated annually based on a profit and loss statement and will be included in the calculation of the N1 ratio to varying degrees over certain periods as follows: