Central Bank issues new directive on the mandatory reserves of credit organisations | Practical Law

Central Bank issues new directive on the mandatory reserves of credit organisations | Practical Law

Central Bank issues new directive on the mandatory reserves of credit organisations

Central Bank issues new directive on the mandatory reserves of credit organisations

Practical Law Legal Update 3-385-2019 (Approx. 2 pages)

Central Bank issues new directive on the mandatory reserves of credit organisations

by White & Case LLP
Published on 05 Mar 2009 • Russian Federation
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As one of the anti-crisis measures, mandatory reserve amounts that credit organisations must hold were reduced. This reduction will be effective until May 2009, after which the amounts that must be held will rise incrementally.
On 19 January 2009 the Central Bank issued Directive No. 2170-U regarding the mandatory reserves for various obligations of credit organisations. The Directive entered into force on 19 January 2009.
Russian credit organisations are required to deposit certain reserve funds on non-interest bearing accounts with the Central Bank. Currently, such mandatory reserves for a credit organisation's obligations of each category (that is, those to non-resident banks in rubles or foreign currency; those to individuals in rubles; and other obligations in rubles or foreign currency) are set at 0.5%.
The Directive provides that these mandatory reserves will be gradually increased and will be:
  • 1.5% as of 1 May 2009.
  • 2.5% as of 1 June 2009.