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FEDERAL LAW OF THE RUSSIAN FEDERATION

of December 2, 1990 No. 395-1

About banks and banking activity

(The last edition from 06-06-2019)

Chapter I. General provisions

Article 1. Basic concepts of this Federal Law

Credit institution - the legal entity who for generation of profit as main objective of the activities based on special permission (license) of the Central bank of the Russian Federation (Bank of Russia) has the right to perform the banking activities provided by this Federal Law. The credit institution is formed on the basis of any pattern of ownership as economic society.

Bank - credit institution which has exclusive right to perform in total the following banking activities: attraction in deposits of money of physical persons and legal entities, placement of the specified means on its own behalf and at own expense on the terms of recoverability, the paid nature, urgency, opening and maintaining bank accounts of physical persons and legal entities.

Bank with the universal license - bank which has the right to perform the banking activities specified in part one of article 5 of this Federal Law.

Bank with the basic license - bank which has the right to perform the banking activities specified in part one of article 5 of this Federal Law taking into account restrictions, the stipulated in Clause 5.1 presents of the Federal Law.

Non-bank credit institution:

1) the credit institution having the right to perform exclusively banking activities specified in Items 3 and 4 (only regarding business bank accounts in connection with implementation of money transfers without opening of bank accounts), and also in Item 5 (only in connection with implementation of money transfers without opening of bank accounts) and Item 9 parts one of article 5 of this Federal Law (further - the non-bank credit institution having the right to implementation of money transfers without opening of bank accounts and the related other banking activities);

2) the credit institution having the right to perform the separate banking activities provided by this Federal Law. Admissible combinations of banking activities for such non-bank credit institution are established by the Bank of Russia;

3) credit institution - the central partner performing functions according to the Federal Law of February 7, 2011 No. 7-FZ "About clearing, clearing activities and the central partner" (further - the Federal Law "About Clearing, Clearing Activities and the Central Partner"). Admissible combinations of banking activities for non-bank credit institution - the central partner (further - the central partner) are established by the Bank of Russia. The Bank of Russia has the right to determine additional terms of implementation by the central partner of banking activities.

Foreign bank - the bank recognized as that by the legislation of foreign state in the territory of which it is registered.

Article 2. Bank system of the Russian Federation and legal regulation of banking activity

The bank system of the Russian Federation includes the Bank of Russia, credit institutions, and also representative offices of foreign banks.

Legal regulation of banking activity is performed by the Constitution of the Russian Federation, this Federal Law, the Federal Law "About the Central Bank Russian Federation (Bank of Russia)", other Federal Laws, regulations of the Bank of Russia.

Article 3. Unions and associations of credit institutions

Credit institutions can create the unions and associations which are not pursuing revenue generating purposes for protection and representation of interests of the members, coordination of their activities, development of interregional and international backgrounds, satisfaction of scientific, information and professional interests, development of recommendations about implementation of banking activity and to the solution of other joint tasks of credit institutions. Banking operations are forbidden to the unions and associations of credit institutions.

The unions and associations of credit institutions are created and registered according to the procedure, established by the legislation of the Russian Federation for non-profit organizations.

The unions and associations of credit institutions notify the Bank of Russia on the creation after registration in a month.

Article 4. Banking group and bank holding

For the purpose of this Federal Law banking group consolidation of legal entities in which one legal entity or several legal entities (further - members of banking group) are under control or considerable influence of one credit institution (further - parent credit institution of banking group) is recognized not being the legal entity.

For the purpose of this Federal Law bank holding the consolidation of legal entities (further - members of bank holding) including at least one credit institution which is under control of one legal entity, not being credit institution (further - parent organization of bank holding), and also (is recognized not being the legal entity in case of their availability) others (not being credit institutions) the legal entities who are under control or considerable influence of parent organization of bank holding or entering into banking groups of credit institutions - members of bank holding provided that the share of banking activity determined on the basis of technique of the Bank of Russia in activities of bank holding constitutes at least 40 percent. The share of banking activity in activities of bank holding is determined as the relation of size of assets and (or) the income of credit institutions - members of bank holding, the determined on the basis of the technique established by the Bank of Russia and cumulative size of assets and (or) the income of bank holding determined taking into account assets and (or) the income based on accounting (financial) records of these legal entities.

Control and considerable influence for determination of members of banking group (bank holding) and creation of the reporting established by this Federal Law are determined according to the International accounting standards (further - IFRS) recognized in the territory of the Russian Federation.

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