Stronger Banking System stabilisation measures.

21.12.2011

Legal Update No. 303

Goltsblat BLP advises that:

Federal Law of 3 December 2011 No. 381-FZ “On Amendment of the Federal Law ‘On Additional Measures  to Strengthen Stability of the Banking System during the Period up to 31 December 2011’” came into effect on 16 December 2011;

Federal Law of 3 December 2011 No. 391-FZ “On Amendment of the Federal Law ‘On Banks and Banking’”
comes into effect on 1 January 2012.

The amendments introduced by Federal Law No. 381-FZ prolong the validity of the Federal Law on strengthening stability of the Banking System to the end of 2014. This Law, in particular, grants the Deposit Insurance Agency and the Bank of Russia exclusive powers in relation to banks on the verge of bankruptcy that are participants in the mandatory individual deposit insurance system.

In addition, the amendments allow the Agency to place funds for financing anti-bankruptcy measures in Bank of Russia deposits.

From 2012, the amendments introduced by Federal Law No. 391-FZ raise the minimum authorised capital of a newly-registered bank from 180 mln RUB to 300 mln RUB.

The minimum amount of the bank’s own funds (capital) is also raised from 180 to 300 mln RUB. For banks with own funds less than 180 mln RUB (as of 1 January 2007), from 1 January 2012 they must reach at least 180 mln Rub and from 1 January 2015 - at least 300 mln RUB. Certain specifics are also set for calculating the bank’s own funds (capital).

The amendments also specify and supplement the grounds on which the Bank of Russia is required to revoke a credit institution’s banking licence. In particular, the bank is deprived of its licence if, after 1 January 2015, its own funds (capital) drop below the set minimum for three months running.

The new version of this article leaves in place the provision that a general licence may be issued to a credit institution with own funds (capital) of at least 900 mln RUB as of the 1st day of the month in which the application for a general licence is submitted to the Bank of Russia.

For additional information, please contact:

to Oleg Khokhlov,
Partner, Banking and Finance Practice,
Goltsblat BLP
T.: +7 (495) 287 44 44,
E: info@gblplaw.com

to Tatiana Parshak,
Associate, Banking and Finance Practice,
Goltsblat BLP
T.: +7 (495) 287 44 44,
E: info@gblplaw.com

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