Sudeban authorizes Citibank to cease operations and Central Bank issues reserve requirement rules
6 enero 2022

VENEZUELA

On January 4, through the Official Gazette, the Superintendency of Banking Sector Institutions (Sudeban in Spanish) published a resolution authorizing the liquidation of Citibank, N.A., Venezuela Branch (Banco Universal). Likewise, the Central Bank repealed Resolution No. 21-01-01 (regarding the constitution of legal reserve) and issued a new resolution to renew the rules that will govern the legal reserve of financial institutions during 2022.

Sudeban published Resolution No. 077.21, whereby it authorized the liquidation, the cessation of operations and revoked the operation of Citibank, N.A. The agency granted a term of thirty (30) continuous days as from the publication of this resolution, to terminate all operations inherent to Citibank, N.A., Sucursal Venezuela (Banco Universal) and refrain from carrying out any type of operation.

The Venezuelan Central Bank issued Resolution No. 21-12-01 issuing the new rules that will govern the constitution of the reserve requirement of financial institutions during this year.

The measure establishes that banking institutions must maintain a minimum reserve requirement, deposited in full at the Venezuelan Central Bank, which varies according to the operation and the institution:

  • Banking institutions authorized to carry out operations in the money market must maintain a reserve requirement of eighty-five percent (85%) of the total amount of Net Obligations in local currency.
  • In the case of operations in foreign currency, the minimum reserve requirement shall be thirty-one percent (31%) of the total amount of Net Obligations.
  • In the case of microfinance banks whose exclusive purpose is to foster, finance or promote activities based on public or private initiative, both in urban and rural areas, they must maintain a minimum reserve of forty percent (40%) of the total amount of Net Obligations in local currency and Assigned Investments.
Noticias Relacionadas
wefeqwf