Bank of Russia to increase required reserve ratios from March

Amid a growing structural liquidity surplus and in order to maintain the downward trend in the share of foreign currency on credit institutions’ balance sheets, the Bank of Russia is going to increase the required reserve ratios from 1 March 2023, according to the previously announced plan:

— by 1 pp to 4% for all categories of reservable liabilities in the currency of the Russian Federation for banks with a universal licence and non-bank credit institutions;

— by 2 pp to 7% for all categories of reservable liabilities in foreign currency for all credit institutions.

Required reserve ratios for all categories of reservable liabilities in the currency of the Russian Federation for banks with a basic licence remain unchanged.

The new ratios are to be first applied to required reserve amounts for March 2023.

According to required reserves averaging periods in 2023, the regulation of the amount of required reserves for March 2023 does not involve the recalculation of the required reserves deposited in required reserve accounts. Hence, as a result of higher required ratios, the overall amount of required reserves will increase only due to the growth of their part that shall be maintained in correspondent accounts within the framework of the averaging mechanism, whereas the amount of required reserves in required reserve accounts will remain the same.

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