Share of foreign participation in a credit institution limited to 50% of the charter capital
14 Dec 2015
On 14 December 2015, the President approved Federal Law No. 372-FZ of 14 December 2015 Concerning the Introduction of Amendments to Articles 16 and 18 of the Federal Law “Concerning Banks and Banking Activities”.
The Law establishes the maximum amount of foreign capital participation in the aggregate charter capital of credit organizations licensed to carry out banking operations, at 50%. The amount of the participation share is annually verified by the Central Bank of Russia as of 1 January. When the quota limit is reached the Central Bank of Russia performs the following actions – refuses banks with foreign investments for registration and licensing, places a ban on increase of the share capital at the expense of foreigners and prohibits the disposal of shares (participation shares) of the bank for the benefit of non-residents.The amendments came into force on 26 December 2015.
Nature of measure:
Type:
-
Entry and establishment (Ownership and control)
Industry:
-
Services (Financial and insurance activities)
Inward FDI:
No
Outward FDI:
No
Sources:
