Publication: Monitor Volume: 2 Issue: 80

The Russian Central Bank is to double charter capital requirements for new banks, the Financial Times reports today. As of May 8, the requirement will go up from 6 billion to 12 billion rubles, and new banks will be required to operate for two years and to have no outstanding debts to the state before they will be eligible for a license to accept retail deposits. The Central Bank is concerned that many of Russia’s 2,285 commercial banks are undercapitalized and that, unless steps are taken now to cull the weakest, the entire banking sector could face a damaging crisis later in the year. (Financial Times, April 24)

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