May 7, 2025

Regulation on the acquisition of shares and stakes in the charter capital of legal entities by banks has been amended

On April 29, the Board of the Central Bank adopted Resolution No. 10/11 “On Amendments and Additions to the Regulation on the Requirements for the Acquisition and Ownership by Commercial Banks of Real Estate and Other Property, as well as the Acquisition of Shares or Stakes in the Charter Capital of Legal Entities” (registered on May 2, 2025, registration number 3441-1).

1. From now on, the creation of a legal entity and the ownership by a bank of a share or stake in the charter capital of a single legal entity must not exceed fifteen percent of the bank’s Tier 1 regulatory capital. Previously, this restriction applied only to the acquisition of shares or stakes by banks.

2. The list of legal entities whose shares and stakes may be acquired by banks has been expanded: banks are now allowed to own companies engaged in factoring activities.

3. Adjusting the value of debt securities is no longer required based on the risk level assigned to the bank’s counterparty (issuer) when calculating capital adequacy.