ANNOUNCEMENT 31 May 2019

On 31 May 2019, the Russian Central Bank increased reserve requirement on liabilities denominated in foreign currency. 

NUMBER OF INTERVENTIONS

1

  • 1 harmful
  • 0 neutral
  • 0 liberalising

SOURCE

Bank of Russia Press-Release regarding Ordinance No. 5158-U, dated 31 May 2019, ‘On Mandatory Reserve Requirements’, https://www.cbr.ru/eng/press/pr/?file=04062019_134315eng_dkp2019-06-04T13_42_27.htm
Chronology of changes in an Excel file produced by Bank of Russia: https://cbr.ru/eng/statistics/credit_statistics/require_res_e.xlsx

Inception date: 01 Jul 2019 | Removal date: open ended

Controls on credit operations

On 31 May 2019, the Bank of Russia decided to raise Russian banks' reserve requirements on foreign-currency-denominated liabilities to individuals by 1 percentage point, to 8%, effective 1 July 2019. Ruble-denominated liabilities require a reserve of 4.75% or 1% depending on the type of credit institution. 

According to the Bank press-release, the higher requirement is "to discourage growth of foreign currency-denominated liabilities in credit institutions’ liability structure.". Other required reserve ratios remain unchanged.

The decision follows the trend of increasing difference in reserve requirements between the ruble and foreign-currency-denominated liabilities, which started in April 2016. 

AFFECTED SECTORS

 
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AFFECTED PRODUCTS

 
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