Bank of Russia eases reserve requirements for C-type accounts

To decrease regulatory burden related to the formation of required reserves for banks with a universal licence and non-bank credit institutions on C-type accounts used in transactions pursuant to Executive Order of the Russian President No. 95, dated 5 March 2022, ‘On a Temporary Procedure for Meeting Obligations to Certain Foreign Creditors’ (hereinafter, Executive Order No. 95), the Bank of Russia has changed the procedure for reserving liabilities on such accounts.

These credit institutions have the right not to include liabilities in Russian rubles and foreign currency recognised in C-type accounts opened for the purpose of meeting the obligations mentioned in Clause 1 of Decree No. 95 in reservable liabilities.

This procedure is applicable starting from the date when the obligations mentioned in Clause 1 of Executive Order No. 95 are recognised as duly fulfilled in pursuance thereof until the date when new balance sheet accounts for recording these obligations are added to the chart of accounts for credit institutions.¹

¹ When calculating the amount of required reserves for March 2022 in compliance with Bank of Russia Regulation No. 507-P, dated 1 December 2015, ‘On Credit Institutions’ Required Reserves’ and starting from the calculation of the amount of required reserves for April 2022 in compliance with Bank of Russia Regulation No. 753-P, dated 11 January 2021, ‘On Credit Institutions’ Required Reserves’.

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