Banks / Charter Capital Requirements

(Tax News Reporter - Week Ended 26 July)

On the basis of the Law "On banks and banking activity" the Central Bank has now issued minimum charter capital requirements for newly established banks. If the foreign participation is less than 50%, the minimum charter capital is 12 billion roubles for banks and 3 billion roubles for non-bank credit institutions. If the foreign share exceeds 50%, the minimum charter capital is 30 billion roubles for banks and 10 billion roubles for other credit institutions. In order to receive a licence to perform foreign currency operations, the own funds should at least amount 30 billion roubles for banks or 10 million roubles for credit institutions.

Telegram of the Central Bank of 9 July 1996 No. 102-96