• RUS CB issued Ord. No. 5618-U on the procedure for the application and termination of the application by RUS CB of the measures provided by Pt 6 of Art 18 of the law on banks and banking activities and the procedure of the RUS CB not to disclose information on the application, reasons for applying and the termination of measures.
• (Ordinance dated 12 November 2020 issued 30 December 2020)

Overview

• If maximum 50% limit on foreign investment in a credit institution is reached, RUS CB must refuse State registration of the credit institution and the issuance of bank license.
• It must ban increasing authorized capital of a credit institution licensed to carry out banking activities at the expense of non-residents, if it means an excess of the quota.
• Also bank shares in favor of non-residents, if the result will be an excess of the quota.
• It can refuse an application for acquisition by a non-resident of more than 10% stake.

Effectiveness

• Comes into force on 10 days after official publication.