LPR and DPR and branches of South Ossetian banks operating in the Zaporozhye and Kherson regions will not be able to increase the amount of deposits above the amount on February 13, 2023. In this respect reported In a document published on the Central Bank’s website.
The publication stated, “The specified bank categories will not be able to withdraw funds from real and legal persons covered by the deposit insurance law in deposits and bank accounts, if their balance exceeds the amount determined on February 13.”
The document added that banks are required to report the number of open accounts, balance and other information to the Central Bank.
The Central Bank noted that on the territory of the new regions of Russia, in particular, the Bank for International Reconciliation (IRB), registered in South Ossetia, operates. However, there is no Central Bank license in these regions. Accordingly, the bank has to inform its customers that it is not a member of the Russian deposit insurance system.
At the end of November, Kommersant referred to the statement made by the press service of the Russian Ziraat Bank. WroteThe Central Bank’s temporary regulatory relaxation has allowed Russian financial institutions to maintain the pace of lending in both the corporate and retail segments. In addition, thanks to these relaxations, banks have reduced competition for customer funds.