The State Duma adopted the law that divides banking licenses into two categories.

The State Duma has passed the Law dividing banking licenses for universal one and basic one

Important notice: Law&Trust no longer work in Russia. Transfer of operational control over Law&Trust in Russia to local management and the formation of the LegalCraft brand was started in 2022 and came into effect in October 2024.
 

The Law was adopted in the third reading last Friday and all operating banks of Russia become banks possessing universal license from the moment of the entry into force of the above law. Current (general) license will be in force until the bank obtains new license to conduct banking facilities.

The bank with universal license should have minimum amount of capital set at 1 billion rubles. The requirements will come into force on January 1, 2018 and will be completely applied to these banks.

Banks that have basic license shall have minimum amount of capital of 300 million rubles. In case of increase in the foregoing capital, such banks are entitled to apply for changing in their license (from basic license to universal one) starting from 1 billion rubles. Banks with basic license have capital limit of 3 billion rubles, and in case of exceeding the indicated amount, the banks will be subject to full-fledged regulation. Minimum authorized capital for non-bank credit institutions is set at the amount of 90 million rubles.

Banks with basic license:

1. Engage funds of legal entities and natural persons in deposits;
2. Open and maintain bank accounts;
3. Carry out transfers of funds;
4. Carry out purchase and sale of foreign currency;
5. Provide (issue) bank guarantees;
6. Provide the raised funds for individuals, small and medium-sized businesses.

Such banks can also grant credit to the company in the Russian Federation, with maximum amount of risk per one or group of related credited parties not exceeding 20% of the bank's capital.

The bank with basic license will not be entitled to carry out a whole range of banking activities with respect to foreign natural persons and legal entities. The restriction applies to the transactions on using of the raised funds, engaging of precious metals in deposits and provision (issuance) of bank guarantees. In addition to all the foregoing, the bank will not be able to require foreign organizations to carry out leasing transactions with it, and issuing warranty will also become impossible.

The Law provides for simplified regulation regarding banks with basic license. Banks will not be required to disclose information on risks assumed, capital and risk management, but at the same time disclosure of annual and interim financial statements, as well as audit report thereto will be mandatory requirement.

In addition to all of the abovementioned, the bank of the Russian Federation has the right to set separate standards for obligatory reserves, fix averaging ratio of required reserves for banks that have basic license after the entry into force of the said law.

Establishment of branches and formation/possession of subsidiaries in the territories of foreign states are allowed (permission of the Central Bank) only to banks with universal license. Moreover, only such banks can open (after notifying the Central Bank) representative offices. However, up to January 1, 2019, banks with the amount of capital that is less than 1 billion rubles can establish branches abroad upon permission of the Bank of the Russian Federation.

Law&Trust International will render full assistance in obtaining banking license abroad. Consultations are free of charge and are available by phone, in chat or during personal conversation in the offices of our company.