On amending Bank of Russia Regulation ‘On Credit Institutions' Required Reserves’
The Bank of Russia introduces a number of amendments to its Regulation No.
The Ordinance specifies the procedure whereby required reserves shall be built up by credit institutions acting as central counterparties pursuant to the Federal Law ‘On Clearing, Clearing Activity and Central Counterparty’.
Additionally, based on leading central banks’ practices, changes have been made to the calculation of a penalty payable by a credit institution non-compliant with the required reserve averaging ratios. The said penalty shall be calculated based on the amount by which the credit institution is non-compliant with the required reserve averaging ratios and the number of calendar days in the averaging period wherein the credit institution failed to meet its obligation as to the required reserve averaging ratios. The measure is designed to align the penalty amount to the amount of profits the credit organisation may obtain by placing funds, in the money market / with the Bank of Russia, in the amount by which it is non-compliant with the required reserve averaging ratios.
Amendments introduced by the ordinance include those related to the identification of credit institutions’ reservable liabilities.
The Ordinance, effective from 1 February 2018, will initially apply to the amount of required reserves credit institutions calculate for February 2018.
Details of Bank of Russia divisions with the functions of regulation and oversight as regards credit institutions’ compliance with required reserve requirements will be posted on the Bank of Russia website.
1 Bank of Russia Ordinance No.
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