The Central Bank of Venezuela (BCV) published January 11 Resolution No. 19-01-01 which increased from 50% to 60% the reserve of the additional profits (marginal balance) that the country’s public and private banks must keep deposited in the BCV. The banking institution thus updated Resolution No. 18-11-02, which was published last December 4. The measure entered into force Monday, January 14.

Banking institutions must maintain a minimum reserve deposited in the BCV. This number is drawn from the sum of 31% of the total operations accounted for as of September 28, 2018 (“net obligation reserve base”); 31% of the total amount of investments assigned as of September 28, 2018 (“ceded investment reserve base”); and 60% of the amount that results from the increase produced in net obligations and assigned investments with respect to their reserve bases (“marginal balance”).

A special reserve remains in force, in addition to the one mentioned above, which implies the retention of 100% of the banks’ liquid assets by the BCV, used for investment and loans, and 50% of the special reserve constituted by December 28, 2018.

Other initiatives aimed at the financial sector in recent weeks include increasing the minimum and maximum limits for credit card financing, increasing the legal reserve of private banks and strengthening controls on foreign currency purchase and sale transactions.