Bank of Russia changes mandatory reserve requirements and sets coefficients for calculating reservable liabilities
Starting from 1 October 2021, simultaneously with the coming into effect of Bank of Russia Regulation No.
In order to counter the growth of the amount of reservable liabilities calculated in accordance with the above Regulation, required reserve ratios have been lowered:
by 0.25 pp to 4.5% for all ruble-denominated liabilities for banks with a universal licence and non-bank credit institutions;
by 3.75 pp to 1.0% for ruble-denominated liabilities to non-resident legal entities for banks with a basic licence.
Other required reserve ratios are set with an effect from 1 October 2021 at their current level:
1.0% — for ruble-denominated liabilities to individuals and other liabilities for banks with a basic licence;
8.0% — for all foreign currency liabilities for banks with a universal licence, banks with a basic licence, and non-bank credit institutions.
At the same time, in order to expand credit institutions’ liquidity management capabilities, the Bank of Russia made a decision to raise the required reserve averaging ratio for banks with a basic licence and banks with a universal licence from 0.8 to 0.9.
New required reserve ratios and required reserve averaging ratios will be applied starting from the calculation of required reserves for October 2021.
In order to calculate the amount of reservable liabilities of credit institutions that are participants in repo operations and deposit transactions with centralised clearing, the Bank of Russia also decided to set coefficients on these operations with respect to liabilities in Russian rubles and foreign currency and do it in the following steps:
0.15 — from 1 October 2021 (to be applied starting from the calculation of the amount of required reserves for October 2021);
0.3 — from 1 January 2022 (to be applied starting from the calculation of the amount of required reserves for January 2022).
The size of the adjustment factor that is set in order to calculate the amount of the credit institution’s liabilities to other resident credit institutions on issued debt securities to be excluded from reservable liabilities has been left unchanged at 0.2.
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