Required Reserves (Reserve Requirements) of the Bank of Russia
- Laws and regulations relating to the required reserves deposited with the Bank of Russia
- List of Bank of Russia rules and regulations establishing the procedure for depositing credit institutions’ required reserves with the Bank of Russia
- Required Reserves (Reserve Requirements) set by the Bank of Russia
- Required reserve regulation deadlines
- The procedure for compiling and presenting the calculation of the required reserves deposited with the Bank of Russia
- Who has the right to average the required reserves?
- The required reserve averaging procedure
- Statistical data on the averaging of the required reserves by credit institutions
- Number of credit institutions exercising the right to average the required reserves
- Amount of the required reserves maintained by credit institutions in correspondent accounts (subaccounts) with the Bank of Russia (averaged amount of the required reserves)
- Credit institutions exercising the right to average the required reserves grouped by registered authorised capital
- Averaged amount of the required reserves of credit institutions exercising the right to average the required reserves (credit institutions grouped by registered authorised capital)
Article 35 of the Federal Law on the Central Bank of the Russian Federation (Bank of Russia) stipulates that the required reserves deposited with the Bank of Russia (reserve requirements) are an instrument of the Bank of Russia monetary policy.
Under Article 38 of this Law, the amount of the required reserves as a percentage of a credit institution’s liabilities (the required reserve ratio) and the procedure for depositing the required reserves are established by the Bank of Russia Board of Directors.
Article 25 of the Federal Law on Banks and Banking Activities requires a credit institution to comply with the required reserve ratio in respect to the term, value and kind of the funds raised.
Credit institutions deposit the required
reserves with the Bank of Russia in compliance with
Bank of Russia
The required reserves deposited by a
credit institution are accounted for in compliance with Bank of Russia Operating
The required reserves are deposited with the Bank of Russia by all credit institutions. A credit institution must comply with the reserve requirements as soon as it receives the Bank of Russia licence to conduct banking operations. No interest is paid on the required reserves deposited by credit institutions with the Bank of Russia.
Collecting do not address to the required reserves deposited by credit institutions with the Bank of Russia.
The required reserves are deposited in the national currency on a non-cash basis by transferring funds to the required reserve accounts opened with the Bank of Russia and, simultaneously, to the correspondent accounts (subaccounts) of credit institutions with the Bank of Russia when a credit institution uses the required reserve averaging procedure.
The required reserve accounts are opened depending on the currency of the liabilities provisioned for (balance sheet accounts No. 30202 “Credit Institutions’ Required Reserves Deposited with the Bank of Russia for the Ruble-Denominated Accounts” and No. 30204 “Credit Institutions’ Required Reserves Deposited with the Bank of Russia for the Foreign Currency-Denominated Accounts”).
The reserving liabilities are the
liabilities of a credit institution, denominated in the national and foreign
currency, whose structure is established in Section 2 of
Bank of Russia
The liabilities of the credit institution grouped in following categories:
— “the liabilities of the credit institutions to non-resident corporate entities” — including liabilities of the credit institutions to non-resident corporate entities, to the non-resident banks, non-resident sole trader (entrepreneurs) in the national currency and/or foreign currency that arose in accordance with the banking (correspondent) account agreements and fund-raising agreements (loan, deposit and other),
— “the liabilities of the credit institutions to the private individuals” — including liabilities of the credit institutions to the resident and non-resident private individuals in the national currency and/or foreign currency, that arose in accordance with the banking deposit agreements (opened savings certificates), banking account agreements.
— “other liabilities” of credit institution in the national currency and/or foreign currency.
Do not include into reserving base following liabilities:
— the money resources, received from the corporate entities (resident, non-resident) and individual businessmen with maturity period of three years and more;
— bonds issued by credit institutions with a maturity period of three years and more;
— non-pecuniary liabilities (precious metals, gemstones or securities loan);
— liabilities to other credit institutions registered in
accordance with the established procedure and conducting operations under
licence issued by the Bank of Russia (except for obligations to the credit institution
which is acting in confidential managing director), liabilities to the
financial organizations, which are provide their activities under the
international agreements of creation with Russian Federation participation, to
Vneshekonombank and to the Bank of Russia (except liabilities under dept
securities with percents), and liabilities to State corporation “Deposit
Insurance Agency” and/or liabilities to investors (non-credit institutions),
which are arise through the rendering financial help under the plans of State
corporation “Deposit Insurance Agency” to prevent a bankruptcy under Federal Low
of The Russian Federation dated October 27, 2008 №
— debts between various divisions of a credit institution.
The sum of liabilities of the dept securities issued by credit institutions is decreasing on sum of interbank liabilities of the dept securities issued by other credit institutions-residents, which is calculated as:
— the sum of reserving liabilities (dept securities part),
— the sum of liabilities of the dept securities issued by credit institutions,
— adjustment factor is a numerical multiplier established by Board of directors of Bank of Russia (in an interval from 0 up to 1) for definition the sum of interbank liabilities of the dept securities issued by other credit institutions-residents, which are not including into reserving base (the information about adjustment factor public in the “Bulletin of Bank of Russia”).
The amount of the required reserves for liabilities denominated in the national currency is reduced by the amount of ruble funds in the cash department of a credit institution, which, however, should not exceed 25% of the amount of the required reserves for the ruble-denominated liabilities.
The Bank of Russia regulates the amount of the required reserves on a monthly basis. It may regulate the amount of the required reserves ahead of schedule by the decision of the Bank of Russia Board of Directors.
The amount of the required reserves calculation made with accounting period from 1st date of accounting month to 1st date of following month (inclusive).
1. the calculation (compiled in the form as indicated in
Annex 1 to
Bank of Russia
2. documents in the form of Annexes
3. the statement on the absence of balances (any form).
4. the necessary explanations.
The document in the form described in Annex 3, 6
to Bank of Russia Regulation No.
In a purpose of separate parameters calculation for the documents compiling
in a form of Annexes 2, 5, 8 to
Bank of Russia Regulation No.
The calculation is presented to the regional branch of the Bank of Russia where a credit institution has a correspondent account by the established deadline.
Calculation and the documents of the credit institution, documents of the regional branches of the Bank of Russia are sending to the head division of the Bank of Russia and to the credit institution, accordingly, on paper and/or in the form of electronic messages with authentication code. The documents sending in the form of electronic messages without an authentication code, have to be sent on paper also.
When making the calculation for its electronic presentation, a credit institution should indicate the balance sheet subaccounts recording the provisioned-for liabilities. The absence of a balance in the balance sheet account is indicated by nil.
When making the calculation for its presentation on paper, a credit institution may indicate the balance sheet subaccounts established by the credit institution’s chart of accounts, except the accounts that had zero balances during the reporting period.
The documents whose forms are shown in
I this cases credit institution send a
statement to the regional branch of the Bank of Russia (any form). This
statement should contain the requisites allowing unequivocally define the form
and number of the Annex (forms and numbers of Annexes) to
Bank of Russia
During the required reserve regulation period, a credit institution may correct the documents presented as part of the calculation (should an error be detected by the regional branch of the Bank of Russia or the credit institution). The corrected calculation should be accompanied by pertinent explanations, signed by the credit institution’s authorized representatives or containing the electronic message authentication code.
In case of updating the calculation and the documents presented as part of the calculation by the credit institution, a Required reserve regulation deadline can’t be prolonged.
A fact of late sending a calculation by
the credit institution is a violation requirements of the
Bank of Russia
|(millions of rubles)|
|Year/month||Amount, million rubles|
|1 of January||267,388.1|
|1 of January||121,740.3|
|1 of January||161,369.9|
|1 of January||221,070.9|
|1 of January||221,620.8|
|1 of January||29,915.7|
|1 of January||151,430.2|
|1 of January||188,375.6|
|1 of January||378,370.1|
|1 of January||425,585.7|
|1 of February||440,967.0|
|1 of March||446,661.8|
|1 of April||449,525.1|
|1 of May||446,661.8|
|1 of June||478,009.4|
|1 of July||497,654.8|
|1 of August||507,463.0|
|1 of September||501,595.7|
|1 of October||506,088.1|
|1 of November||508,921.2|
|1 of December||510,105.1|
|1 of January||408,809.0|
|1 of February||411,264.0|
The right to
use the required reserve averaging framework is granted to credit
institution, concerning to the first or the second classification groups under
Bank of Russia standard acts (for non-bank credit institutions — Bank of Russia
1. have no shortfall in the required reserves or unpaid fines imposed for non-compliance with the reserve requirements;
2. it had fulfilled its obligation to average the required reserves in the previous averaging period (in case credit institution used a right of reserve averaging framework);
3. it has no overdue pecuniary obligations to the Bank of Russia, including overdue obligations on loans and interest on them.
The averaging of the required reserves signifies that the averaged balance in the correspondent account (correspondent subaccount(s)) opened by a credit institution with the Bank of Russia is accepted as the fulfilment of the reserve requirements.
To calculate the amount of the required reserves that must be maintained in the correspondent account (correspondent subaccount(s)) of a credit institution with the Bank of Russia, the credit institution uses an averaging ratio that should not exceed the averaging ratio established by the Bank of Russia.
To be granted the right to do the averaging in the current averaging period, a credit institution should calculate and indicate in the calculation the averaged amount of the required reserves.
The averaging period means the period from the 10st date of the month after accounting month to 10st date of the second month after accounting month inclusive. In case of required reserve extra regulation the averaging period established by Bank of Russia.
If a credit institution meets the established criteria, the regional branch of the Bank of Russia grants it the right to do the averaging and establishes the averaged amount of the required reserves for the calculation.
If a credit institution fails to meet the established criteria, the regional branch of the Bank of Russia refuses to grant it the right to do the averaging and the averaged amount of the required reserves for the calculation is set at nil.
The regional branch of the Bank of Russia notifies a credit institution of its decision in the Regulation report.
The Bank of Russia gives opportunity to credit institutions to extend credits at fixed rates to enable credit institutions efficiently manage their liquidity when using the required reserve averaging mechanism. It is possible to find out conditions of this credit operations in the following sections “Loans Extended against the Collateral (Blocking) of Securities from the Bank of Russia Lombard List (Intraday, Overnight and Lombard Loans)” and “Loans secured by non-marketable assets or guarantee” of material “Bank of Russia Secured Loans”.
|Region||January 2005||January 2006||January 2007||January 2008||January 2009||From 10.01.2010 till 10.02.2010||From 10.01.2011 till 10.02.2011||From 10.01.2012 till 10.02.2012||From 10.01.2013 till 10.02.2013||From 10.01.2014 till 10.02.2014|
|Number of credit institutions exercising the right to average the required reserves||Number of credit institutions exercising the right to average the required reserves||Number of credit institutions exercising the right to average the required reserves||Number of credit institutions exercising the right to average the required reserves||Number of credit institutions exercising the right to average the required reserves||Number of credit institutions exercising the right to average the required reserves||Number of credit institutions exercising the right to average the required reserves||Number of credit institutions exercising the right to average the required reserves||Number of credit institutions exercising the right to average the required reserves||Number of credit institutions exercising the right to average the required reserves||% share of operating credit institutions in the region|
|Central Federal District||291||324||331||355||394||397||361||348||371||326||59.8|
|Moscow and Moscow Region||240||267||273||297||337||340||314||305||329||294||59.3|
|Republic of Karelia||1||1||1||1||1||1||0||0||1||1||100.0|
|Republic of Komi||1||2||3||3||3||3||2||2||2||1||100.0|
|South Federal District*||24||51||73||81||90||44||38||34||35||35||76.1|
|Republic of Adigei (Adigeya)||1||4||4||5||5||5||4||4||4||100.0|
|Republic of Kalmykia||0||2||2||2||2||2||2||2||2||1||50.0|
|North-Caucasian Federal District*||43||42||38||33||19||45.2|
|Republic of Daghestan||2||5||14||17||20||20||20||21||14||7||35.0|
|Republic of Ingushetia||1||1||1||1||1||1||1||1||1||1||50.0|
|Republic of Northern Ossetia — Alania||1||1||4||3||4||5||6||5||4||2||50.0|
|Republic of Chechnya**||—||—||—||—||—||—||—||—||—||—||—|
|Privolzhsky Federal District||95||105||117||122||119||121||101||96||90||84||81.6|
|Republic of Bashkortostan||12||11||12||11||11||11||9||8||7||6||60.0|
|Republic of Mariy-El||0||0||0||1||1||1||1||1||1||2||100.0|
|Republic of Mordovia||2||3||3||3||3||3||3||3||4||3||75.0|
|Republic of Tatarstan (Tatarstan)||14||15||21||22||22||24||24||24||22||21||95.5|
|Chuvash Republic — Chuvashya||3||5||5||5||5||5||4||4||4||4||100.0|
|Nizhni Novgorod Region||14||13||16||16||16||16||12||11||9||9||75.0|
|Urals Federal District||43||52||59||56||55||51||42||39||37||34||82.9|
|Siberia Federal District||34||45||56||60||63||57||41||46||44||34||68.0|
|Republic of Altai||2||3||3||4||4||4||0||2||1||1||50.0|
|Republic of Buryatia||1||1||1||1||1||1||1||1||1||1||100.0|
|Republic of Tyva||1||1||2||2||2||2||0||1||0||0||0.0|
|Republic of Khakassia||3||3||3||2||3||3||3||2||2||2||100.0|
|Far East Federal District||18||20||29||35||32||31||23||24||20||16||72.7|
|Republic of Sakha (Yakutia)||4||4||6||6||5||4||4||4||4||4||100.0|
|Jewish Autonomous Region**||—||—||—||—||—||—||—||—||—||—||—|
|Chukotka Autonomous Area**||—||—||—||—||—||—||—||—||—||—||—|
|* Till January 19, 2010, the structure of South Federal District
included the regions of the Russian Federation allocated in structure of the
North-Caucasian Federal District according to the Ordinance of the President
of the Russian Federation N 82, dated January 19, 2010.
** Doesn’t have independent credit institutions.
Amount of the required reserves maintained by credit institutions in correspondent accounts (subaccounts) with the Bank of Russia (averaged amount of the required reserves)
|Averaging period||Amount, billion rubles|
|From 10.01.2010 till 10.02.2010||200.3|
|From 10.01.2011 till 10.02.2011||246.0|
|From 10.01.2012 till 10.02.2012||518.1|
|From 10.01.2013 till 10.02.2013||593.1|
|From 10.02.2013 till 10.03.2013||601.0|
|From 10.03.2013 till 10.04.2013||605.5|
|From 10.04.2013 till 10.05.2013||640.1|
|From 10.05.2013 till 10.06.2013||666.0|
|From 10.06.2013 till 10.07.2013||676.5|
|From 10.07.2013 till 10.08.2013||686.1|
|From 10.08.2013 till 10.09.2013||674.9|
|From 10.09.2013 till 10.10.2013||679.6|
|From 10.10.2013 till 10.11.2013||675.3|
|From 10.11.2013 till 10.12.2013||683.6|
|From 10.12.2013 till 10.01.2014||794.1|
|From 10.01.2014 till 10.02.2014||825.8|
A reduction in the required reserve accounts (required reserve utilisation) is possible in the following cases:
1. as a result of the regulation of the amount of the required reserves (when the amount of a credit institution’s liabilities provisioned for decreases and (or) when the required reserve ratios are reduced and (or) when the Bank of Russia averaging ratio is increased);
2. when a credit institution is granted the right to average the required reserves (that is, to maintain the averaged amount of the required reserves in the credit institution’s correspondent account (correspondent subaccount(s) opened with the Bank of Russia);
3. after the revocation of banking licence from a credit institution (the required reserves are transferred to the correspondent account opened with the Bank of Russia and used according to the procedure established by the federal laws and regulations issued in pursuance of these laws).
Should a credit institution violate the reserve requirements, the Bank of Russia has the power without further authorisation to write down from the credit institution’s correspondent account (correspondent subaccount(s)) with the Bank of Russia the amount underpaid and judicially impose a fine in the amount established by the Bank of Russia. Fines for violation of the reserve requirements paid by credit institutions (recovered by the Bank of Russia in accordance with the established procedure) go to the federal budget revenue.
Compliance by a credit institution with the reserve requirements is one of the criteria taken into account when accessing the credit institution to the Bank of Russia monetary policy operations (refinancing of (lending to) credit institutions and deposit, repo, reverse repo, currency swap and other Bank of Russia operations).
|1. Bank of Russia Bulletin (in Russian);|
|2. Bulletin of Banking Statistics:|
|— Table 1.19 “Monetary Base (Broad Definition)”;|
|— Table 2.3 “2.3 Required Reserves Ratios”;|
|— Table 2.4 “2.4 Scaling Factor Which Is Used to Correct the Sum of the Credit Institution Liabilities to Other Credit Institutions — Residents for Issued Securities”;|
|— Table 2.5 “2.5 Required Reserves (Averaged Amount) Held by Credit Institutions in Their Correspondent Accounts (Subaccounts) with the Bank of Russia”;|
|— Table 6.1.6 “6.1.6 Credit Institutions Using the Right to Average the Required Reserves within Averaging Period from __ 10 to __ 10, ____ Grouped by Registered Authorized Capital”;|
|— Diagram 7.5 “7.6 Averaged Amount of Required Reserves of Credit Institutions Exercising the Averaging Right within Averaging Period from __ 10 to __ 10, ____ (Credit Institutions Grouped by Size of Registered Authorized Capital)”;|
|— Diagram 7.7 “Structure of Broad Monetary Base as of ___”;|
|— Section 8 “Summary Methodology”.|
|3. Guidelines for the Single State Monetary Policy;|
|4. Bank of Russia Annual Report.|
|Updated February 25, 2014.|