The Central Bank (CB) of Russia has been raising the required reserve ratios since March, said press office regulator. This will be done “in the context of a growing structural liquidity surplus and in order to maintain the trend towards devaluation of balance sheets.”
What regulations will be affected by the changes:
- for all categories of reserved liabilities in rubles for banks with a universal license and non-banking credit institutions – up to 4%;
- for all categories of reserved liabilities in foreign currency for all credit institutions – up to 7%.
For banks with a basic license, the ratios for liabilities in rubles will remain unchanged. The new standards are applied starting from the regulation of the amount of required reserves for March 2023.
The required reserve ratio is the share of a commercial bank’s liabilities on attracted deposits. It guarantees the fulfillment of obligations to customers. The bank is obliged to keep these funds in reserve in a deposit with the Central Bank or in cash.
The increase in the required reserve ratios for banks was announced by the Central Bank in July 2022. It was planned to hold it in August, but in the end it was decided to shift the deadline to March 1, 2023. At the same time, the approximate date for the second stage of the regulatory increase, scheduled for June 1, 2023, was retained.