The act establishes in law the numerical value of the quota at 50%, its calculation and the procedure of the Bank of Russia in excess of such quota.
MOSCOW, Dec 15. The President of Russia Vladimir Putin signed a law establishing quotas for the participation of foreign capital in the aggregate Charter capital of credit organisations operating in territory of the Russian Federation, in the amount of 50%. The document is published on the official Internet portal of legal information.
Earlier it was envisaged the possibility of establishing a quota for participation of foreign capital in the banking system of the Russian Federation the Federal law. However, the possibility of introducing such a quota was not implemented.
The act establishes in law the numerical value of the quota, a methodology for its calculation and the procedure of the Bank of Russia in excess of such quota. In case of exceeding quotas the Bank of Russia will have the right to refuse registration of loan organizations with foreign investments and prohibit the increase of the authorized capital of the Bank at the expense of the residents.
The document clarifies foreign investment, which will not be taken into account in determining quotas. First, this applies to foreign investments made in authorized capitals of credit institutions licensed to conduct banking operations, and funded from the profits of these banks received in the Russian Federation or repatriated to Russia from abroad.
Secondly, foreign investments made prior to 1 January 2007. Thirdly, foreign investments made in authorized capitals of credit institutions licensed to conduct banking operations, whose privatization was carried out after 22 August 2012.
The Bank of Russia will now be entitled by agreement with the government of the Russian Federation to establish for the banks with foreign investment restrictions on banking operations, if the respective foreign States in relation to banks with Russian investments and branches of Russian banks have limitations in their creation and activity.