Amendment to the Communiqué on Reserve Requirements
AI-generated summary for informational purposes only. Not legal advice. See the original source for the authoritative text.
This rule changes the reserve requirement rates that banks must hold against foreign currency liabilities. The highest rate is now 32% for demand, notice, and up-to-1-month foreign currency deposits and participation funds, while longer deposit maturities are set at 28%. Other foreign currency liabilities are taxed by maturity, falling from 21% for up to one year to 0% for maturities longer than five years. The change mainly affects banks and participation banks that collect foreign currency deposits, run repo funding with domestic residents, or carry other foreign currency liabilities. Treasury, funding, and compliance teams should update reserve calculations immediately because the communiqué takes effect on publication.
AI-generated summary. May contain errors. Refer to official sources for legal decisions.
Key Changes
- Updates reserve requirement rates for foreign currency deposits and participation funds, including a 32% rate for demand, notice, and up-to-1-month maturities.
- Sets a 28% reserve requirement rate for foreign currency deposits and participation funds with maturities up to 3 months, 6 months, 1 year, and 1 year or longer.
- Revises rates for other foreign currency liabilities by maturity and repeals two existing provisions in the reserve requirements communiqué.
Obligations
What this law requires
Hold a 32% reserve requirement against foreign-currency deposits and participation funds, excluding deposits/participation funds of foreign banks, that are demand, notice, or have maturities up to 1 month.
Hold a 28% reserve requirement against foreign-currency deposits and participation funds, excluding deposits/participation funds of foreign banks, with maturities up to 3 months, up to 6 months, up to 1 year, or 1 year and longer.
Hold a 25% reserve requirement against funds of borrowers classified as foreign-currency liabilities.
Hold a 21% reserve requirement against other foreign-currency liabilities, including foreign-bank deposits and participation funds, with maturities up to and including 1 year.
Hold a 10% reserve requirement against other foreign-currency liabilities, including foreign-bank deposits and participation funds, with maturities up to and including 2 years.