Required reserve ratios changed

The Bank of Russia took a decision¹ to raise required reserve ratios on liabilities to individuals in foreign currency for banks with a universal licence, banks with a basic licence and non-bank credit institutions by 1 percentage point to 8.00 per cent, effective from 1 July 2019.

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

Other required reserve ratios remain unchanged:

on liabilities to individuals and other liabilities in Russian rubles — 4.75 per cent for banks with a universal licence and non-bank credit institutions, 1.00 per cent for banks with a basic licence;

on liabilities to non-resident legal entities in Russian rubles — 4.75 per cent for banks with a universal or basic licence and non-bank credit institutions;

on liabilities to non-resident legal entities and other foreign currency-denominated liabilities — 8.00 per cent for banks with a universal or basic licence and non-bank credit institutions.

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

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

— for non-bank credit institutions — 1.0.

_____________

¹ Bank of Russia Ordinance No. 5158-U, dated 31 May 2019, ‘On Mandatory Reserve Requirements’. Required reserve ratios in line with Ordinance No. 5158-U will begin to apply beginning with credit institutions’ required reserve amounts calculated for July 2019.

The reference to the Press Service is mandatory if you intend to use this material.