Laws and regulations relating to the required reserves deposited with the Bank of Russia

Article 35 of the Federal Law on the Central Bank of the Russian Federation (Bank of Russia) stipulates that the required reserves deposited with the Bank of Russia (reserve requirements) are an instrument of the Bank of Russia monetary policy.

    Under Article 38 of this Law, the amount of the required reserves as a percentage of a credit institution's liabilities (the required reserve ratio) and the procedure for depositing the required reserves are established by the Bank of Russia Board of Directors.

    Article 25 of the Federal Law on Banks and Banking Activities requires a credit institution to comply with the required reserve ratio in respect to the term, value and kind of the funds raised.

    Credit institutions deposit the required reserves with the Bank of Russia in compliance with , "On the Required Reserves of Credit Institutions".

    The required reserves deposited by a credit institution are accounted for in compliance with Bank of Russia Operating Ordinance No. 113-T, dated August 11, 2010, "About accounting by credit institutions the deposit of Required Reserved with the Bank of Russia".

    The required reserves are deposited with the Bank of Russia by all credit institutions. A credit institution must comply with the reserve requirements as soon as it receives the Bank of Russia licence to conduct banking operations. No interest is paid on the required reserves deposited by credit institutions with the Bank of Russia.

    Collecting do not address to the required reserves deposited by credit institutions with the Bank of Russia.

    The required reserve depositing procedure

    The required reserves are deposited in the national currency on a non-cash basis by transferring funds to the required reserve accounts opened with the Bank of Russia and, simultaneously, to the correspondent accounts (subaccounts) of credit institutions with the Bank of Russia when a credit institution uses the required reserve averaging procedure.

    The required reserve accounts are opened depending on the currency of the liabilities provisioned for (balance sheet accounts No. 30202 "Credit Institutions' Required Reserves Deposited with the Bank of Russia for the Ruble-Denominated Accounts" and No. 30204 "Credit Institutions' Required Reserves Deposited with the Bank of Russia for the Foreign Currency-Denominated Accounts").

    The reserving liabilities are the liabilities of a credit institution, denominated in the national and foreign currency, whose structure is established in Section 2 of .

    The liabilities of the credit institution grouped in following categories:

    - "the liabilities of the credit institutions to non-resident corporate entities" - including liabilities of the credit institutions to non-resident corporate entities, to the non-resident banks, non-resident sole trader (entrepreneurs) in the national currency and/or foreign currency that arose in accordance with the banking (correspondent) account agreements and fund-raising agreements (loan, deposit and other),

    - "the liabilities of the credit institutions to the private individuals" - including liabilities of the credit institutions to the resident and non-resident private individuals in the national currency and/or foreign currency, that arose in accordance with the banking deposit agreements (opened savings certificates), banking account agreements.

    - "other liabilities" of credit institution in the national currency and/or foreign currency.

    Do not include into reserving base following liabilities:

    - the money resources, received from the corporate entities (resident, non-resident) with maturity period of three years and more;

    - bonds issued by credit institutions with a maturity period of three years and more;

    - non-pecuniary liabilities (precious metals, gemstones or securities loan);

    - liabilities to other credit institutions registered in accordance with the established procedure and conducting operations under licence issued by the Bank of Russia, liabilities to the international financial organizations, which are provide their activities under the international agreements of creation with Russian Federation participation, to Vneshekonombank and to the Bank of Russia (except liabilities under dept securities with percents), and liabilities to State corporation "Deposit Insurance Agency" and/or liabilities to investors (non-credit institutions), which are arise through the rendering financial help under the plans of State corporation "Deposit Insurance Agency" to prevent a bankruptcy under Federal Low of The Russian Federation dated October 27, 2008