Banking

 

Economic ratios

On 24 November 2011 the Central Bank issued Letter No. 15- 1- 2-7/5195 regarding Directive No. 2613-U amending Instruction No. 110-I “On Mandatory Economic Ratios for Banks.”

The Directive amended the rules on the calculation of a bank’s net worth (capital) ratio (N1) by including ‘operations subject to a high risk multiplier’ in its calculation (see our update for 23 May – 5 June 2011).

The Letter refers to the Directive – on Central Bank’s website – for frequently asked questions (see http://www.cbr.ru/analytics/standart_acts/bank_supervision/).

The Letter was posted at www.arb.ru on 5 December 2011.

Insider information

On 8 December 2011 the Association of Russian Banks reported on the development of its Methodological Recommendations for Compiling Lists of Insiders by Lending Organizations.

The Recommendations, called the “matrix of insiders,” are intended to be helpful for banks when they compile lists of insiders in accordance with the Law on Combating Unlawful Use of Insider Information.

The Recommendations are available at www.arb.ru.

Minimum Charter Capital of Banks

On 3 December 2011 the President signed Federal Law No. 391-FZ amending the Federal Law “On Banks and Banking Activity.”

The Law increases the minimum charter capital for newly established banks and the minimum net worth (capital) for existing banks and non-banking lending organizations seeking to become banks from RUB 180 million to RUB 300 million (about US$10 million).

Banks whose net (worth) capital is below that threshold are to increase it to RUB 300 million by 1 January 2015. Failure to do so will entail revocation of the bank’s banking license.

The Law will enter into force on 1 January 2012.

For further information please contact Igor Ostapets or Irina Dmitrieva in the Moscow office of White & Case, tel + 7 495 787 3000 .

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