Translartion. Region: Russians Fedetion –
Source: Central Bank of Russia –
The Bank of Russia, following discussions with the market on the reform of credit concentration risk regulation finalized individual provisions of the concept.
In particular, the following changes have been made to it:original version:
— a reduced risk weight of 50% for state-owned companies with revenues exceeding 2% of GDP when calculating concentration standards will be applied for a year longer — until January 1, 2029. By that time, the concentration limiter for such companies will be the H30 standard, which will be calculated by systemically important banks;
— the criteria for the operational independence of companies for determining a group of related borrowers (GRB) have been adjusted. In particular, the requirements for the composition of the board of directors have been simplified. In addition, if the mutual financial obligations of companies in one GRB are small, the companies will be considered operationally independent;
— the approach to which subsidiaries and dependent companies of the bank may be excluded from the calculation of the maximum risk standard for related parties H25 has been clarified. Financial subsidiaries that finance the business of the bank owners insignificantly will be excluded.
The Bank of Russia will continue to introduce regulations aimed at reducing concentration risks. It is expected that a number of changes (for example, the phased introduction of calculating concentration on the issuer of securities under reverse repo, inclusion in the calculation of requirements for accrued credit income, operational independence criteria) will be implemented as early as 2025.
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