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.
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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