The Central Bank of Cuba (BCC) has published Resolution 163/2023, which updates the minimum initial capital that banking and non-banking entities must have to start operating in the country.
According to the regulation published in the Gazette of Cuba, the measure aims to adapt to the current economic situation and strengthen the Cuban financial system.
The Cuban law states that to begin operations, financial institutions are required to pay the minimum initial capital amount determined by the Central Bank of Cuba and maintain it during the period of the granted authorization.
According to a 1998 regulation by the Central Bank of Cuba, a minimum capital of five million pesos was set for banks and two million for other financial entities. If they operated in another currency, they had to have an equivalent capital in freely convertible currency.
However, the resolution signed by Minister President Joaquín Alonso Vázquez argues that the current economic scenario requires updating the minimum initial capital that financial institutions are required to pay to start operating.
New minimum initial capital amounts that financial institutions are required to pay to start operating in Cuba.
Universal, corporate, and second-tier banks
- Cuban capital: 120 million Cuban pesos (CUP).
- Mixed or foreign capital: 5 million US dollars or its equivalent in freely convertible currency, at the prevailing exchange rate at the time of payment.
Investment banks
- Cuban capital: 62 million CUP.
Non-bank financial institutions with Cuban capital
- Financial intermediation and shareholders: 8 million CUP.
- Trust, remittances, ATMs, debit cards: 1.5 million CUP.
Non-bank financial institutions with mixed or foreign capital2 million USD or its equivalent in freely convertible currency, at the prevailing exchange rate at the time of payment.
Deadline to complete the capital:
Entities that do not meet the new minimum capital have one year to complete it.
According to the Resolution 163/2023:
Banks and non-bank financial institutions that, as a result of the update, have capital below the required minimum must replenish it within one year.
The update of the minimum capital for financial institutions in Cuba has the potential to strengthen the financial system. However, it could also have some negative consequences, such as a reduction in the number of financial entities and a possible increase in fees for customers.
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My God, where are we headed, who are the serious-minded people thinking of these kinds of financial measures, they are going to end up destroying this country's economy, which economist, faced with this severe liquidity crisis, comes up with this type of solution? We are doomed!!!
Investment laws, like any public productive activity, should be inspired by the creation of jobs and industrial activity, not by setting caps on investment amounts in a market that has not had organizational or productive experience in half a century, just for a small group that has just learned that oppressing is as easy as acting foolish.
The country is tired of the Havana regime's game
You don't play with the people
It's just a story and the transfer limits are always 120 per month and 80 per day. That's what they should change so they can collect more money. Just understand it.
Pure neoliberalism