The State Duma approved amendments to the Russian banking legislation, introducing investment limits in the Russian banking sector.
In early December the Russian State Duma approved in the third reading a draft law on amendments to the Bank and Banking Activity Law of the Russian Federation.
The draft establishes a 50% investment quota for foreign investment in the aggregated capital of Russian banking institutions licensed to conduct banking operations.
Certain foreign investments listed in the law will not be taken into account for calculating the quota, in particular foreign investments made before 1 July 2007 and foreign investments in credit organisations which were privatised after 22 August 2012.
In case the limit is reached, CBR can take the following actions:
- deny registration or granting license for banking operations of a credit organisation with foreign capital;
- prohibit the increase of charter capital of the bank with foreign investor capital;
In order to become effective, the draft law must be enacted by the President. The Central Bank of Russia reported that on 1 October 2015 the share of foreign banking investment was 17.22%.
Contact:
Yuliya Shibukova
Relationship Manager
GSS Russia
Yuliya.Shibukova@unicredit.ru