Banks/ Minimum Charter Capital And Equity Requirements

(Tax News Reporter - Week Ended 14 January 1997)

Newly registered Russian banks or existing banks with foreign participation not exceeding 50% must have a charter capital of at least 20.7 billion roubles. For non-bank credit organisations the minimum requirement is 5.2 billion roubles. If foreign participation equals or exceeds 50%, the charter capital should be at least 34.5 billion roubles, with at least 10 billion roubles to be contributed by one non-resident shareholder. In order to receive a foreign currency licence, banks should have equity of at least 34.5 billion roubles, non-banks of at least 8.5 billion roubles.

Telegram of the Central Bank of 5 January 1997 No. 1-97