The Central Bank is the main financial institution in Russia. However, the country has also allowed a great number of foreign banks to operate here through branches and even representative offices. Russia is also home to non-financial institutions which are licenses to offer loans. Even if both types of institutions are subject to the same legislation on banking activities, the main difference between them resides in the number of services they can provide.
Our lawyers in Russia can offer more information on the banking system in this country.
The first Banking Law in Russia was issued in 1990. This is the Federal Law No. 395-1 “On Banks and Banking”. The law was altered several times, with the last modification registered at the end of 2013. Other important laws on banking activities in Russia are:
As mentioned above, the Banking Law was amended in 2013 in order to adhere to international standards and to provide easy access to the market to foreign banks. One of the most important amendments brought to the law refer to banking groups and bank holding companies, which are now allowed to be formed by others than credit institutions alone with only one of the companies required to be credit institution.
Foreign investors setting up banks in Russia are required to fulfill certain requirements in order to obtain one of the following banking licenses:
Russian banks are allowed to conduct the following activities under the license above:
For complete information on the Banking Law, do not hesitate to contact out law firm in Russia.
There are no comments