Translation. Region: Russian Federal
Source: Central Bank of Russia –
The regulator plans to limit the risks of bank investments in non-core assets that do not have repayment requirements, are of limited liquidity and bear shareholder risks (immobilized assets). These include investments in equity instruments, tangible property, excess fixed assets, and ecosystems.
For this purpose, a risk-sensitive limit (RSL) will be introduced: immobilized assets exceeding the RSL will have to be covered by the bank with capital. As a result, the risks of excess investment in such assets will be transferred from depositors and creditors to the bank’s shareholders.
The new regulation will apply to banks with a universal license and is planned to come into effect in 2026.
The mechanism for calculating the RFL, initially published in 2021, was revised based on the results of a survey of banks and an assessment of the effect of introducing a limit on the sector. As a result, the composition of assets included in the RCL was clarified and supplemented, the maximum immobilization coefficient was reduced, and the schedule for achieving the target limit level was relaxed. The updated parameters of the RCL are given in the Bank of Russia report.
Answers to the questions presented in the material, as well as comments and suggestions, can be sent to the Bank of Russia up to and including June 27, 2025.
Preview photo: ARVD73 / Shutterstock / Fotodom
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