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Report: Russia to loosen requirements for lenders holding state funds

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Report: Russia to loosen requirements for lenders holding state funds

The Russian Finance Ministry plans to relax rating and possibly capital requirements for banks that are allowed to hold state deposits on their accounts, Kommersant reported Feb. 28.

The Ministry already prepared a draft decree under which lenders wishing to access state funds will have to hold at least an A- rating assigned by local agencies. It is also possible that the minimum capital requirement for such banks will be lowered to 1 billion Russian rubles, the newspaper said, citing Deputy Finance Minister Alexei Moiseev.

Currently, state funds can be held in banks with capital of at least 250 billion rubles, which also have at least an A+ rating assigned by local rating agencies Expert RA and ACRA or are controlled by the state or the central bank. Only PAO Sberbank of Russia, JSC VTB Bank, AO Gazprombank, JSC Russian Agricultural Bank and privately owned JSC Alfa-Bank meet the requirements, although the latter does not hold state deposits at the moment, the newspaper noted.

The planned changes, especially the possible reduction of the minimum capital requirement, would significantly expand the group of banks that are allowed to hold state deposits, with smaller state banks, lenders recently bailed out by the regulator, as well as private lenders such as PJSC Sovcombank, Société Générale SA unit PJSC ROSBANK, PJSC Bank Saint-Petersburg and others gaining access to state funds, Kommersant noted.

As of Feb. 28, US$1 was equivalent to 56.28 Russian rubles.