Central Bank of the Russian Federation

06/17/2021 | Press release | Distributed by Public on 06/18/2021 03:12

Bank of Russia to apply simplified approach to required reserves creation by credit institutions beginning from October 2021

The Ministry of Justice of the Russian Federation registered Bank of Russia Regulation No. 753-P, dated 11 January 2021, 'On Credit Institutions' Required Reserves' simplifying the procedure for the formation of required reserves and reducing regulatory burden on credit institutions. It will become effective on 1 October 2021. The new regulation will first be applied to credit institutions' required reserve amounts for October 2021.

According to the document, the Bank of Russia will calculate credit institutions' required reserves based on their regular reporting. The regulation cancels credit institutions' specialised reports on required reserves.

In the course of the monthly regulation of required reserve amounts, only their averaged value will change, while the balances of funds in required reserve accounts will be changed once a year.

The new regulation implies the mandatory averaging of required reserves, using a single averaging ratio applicable to banks or non-bank financial institutions. It also updates the procedure for calculating and imposing penalties on credit institutions breaching the mandatory reserve requirements.

Furthermore, the new approach cancels specialised inspections to control compliance with the mandatory reserve requirements.

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