CBR to permanently allow banks with basic licenses to open correspondent accounts abroad

MOSCOW. March 3 (Interfax) - The Central Bank of Russia (CBR) is considering permanently allowing banks with basic licenses to open correspondent accounts abroad, Central Bank chief Elvira Nabiullina said.

"Restrictions on opening foreign accounts for banks with basic licenses have been temporarily lifted in order to expand possibilities. We are considering the possibility of lifting these restrictions already on a permanent basis, but banks with basic licenses will have to set a general limit for the concentration of such placements, in percentage of capital, so as to maintain a balance between possibilities and risks," Nabiullina said at a meeting between top CBR officials and bankers organized by the Association of Banks of Russia.

A law that allows banks with basic licenses to temporarily (until December 31, 2023) open bank (correspondent) accounts at foreign banks went into effect last July.

The law that divides banks into those with universal and those with basic licenses by list of allowable transactions went into effect in June 2017. Banks with basic licenses, unlike those with universal ones, are subject to restrictions in conducting a number of transactions, including with foreign currency, but at the same time they enjoy simplified regulation. Banks with basic licenses primarily specialize in working with retail customers and small and medium businesses.