On amending required reserve ratios

The Bank of Russia decided to increase required reserve ratios on credit institutions’ FX liabilities by 1 percentage point from 1 August 2018:

• required reserve ratio on liabilities to individuals will be raised to 7.0%;
• required reserve ratios on liabilities to non-resident legal entities and on other liabilities will be raised to 8.0%.

This measure is intended to discourage growth of FX denominated liabilities in credit institutions’ liability structure.

Required reserve ratios on credit institutions’ liabilities in the currency of the Russian Federation remain unchanged:

• required reserve ratios on liabilities to individuals and other liabilities will amount to 5.0% for banks with universal licences and non-bank credit institutions, and to 1.0% for banks with basic licences;
• required reserve ratio on liabilities to non-resident legal entities will amount to 5.0% for banks with universal or basic license and non-bank credit institutions.

The Bank of Russia has approved Ordinance No. 4871-U ‘On Mandatory Reserve Requirements’ (hereinafter the Ordinance), determining the said ratios and terms for their implementation.

Required reserve ratios, set by the Ordinance, will initially apply to the amount of required reserves credit institutions calculate for August 2018.

The required reserves averaging ratios used by credit institutions to calculate the averaged amount of required reserves will also remain unchanged:

— for banks with universal or basic licence — 0.8%;

— for non-bank credit institutions — 1.0%.

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