Translation. Region: Russian Federal
Source: Central Bank of Russia –
An important disclaimer is at the bottom of this article.
From August 18, 2025, banks will begin calculating capital adequacy standards according to new instructions from the Bank of Russia No. 220-I And No. 221-I.
The new rules imply the transition of all banks with a universal license to a finalized (more risk-sensitive) approach to calculating capital adequacy standards. The standard approach will be retained for banks with a basic license and non-bank credit institutions.
Other important changes include:
— the criteria for classifying borrowers as investment grade have been improved (in particular, a condition has been added for having a credit rating of at least “A”), to which a reduced risk weight is applied;
— differentiated risk weights have been introduced for loans to subjects and municipalities of Russia depending on the level of credit rating from Russian rating agencies, and in its absence, on the level of debt sustainability as assessed by the Ministry of Finance of Russia (in the future, it is planned to completely switch to credit ratings);
— risk weights for mortgage loans at the construction stage are equal to those used for mortgages on completed housing, and those, in turn, are calibrated based on default statistics;
— when calculating macroprudential premiums, a single multiplicative approach will be applied both for banks using approaches to risk assessment based on internal ratings and for other banks;
— further important steps have been taken to address the problem of credit concentration: firstly, under repo transactions the risk will be considered to be on the issuer of securities accepted as collateral if the borrower's rating is below "AA"; secondly, banks will be able to transfer the concentration risk from the borrower to a reliable guarantor/surety/issuer of securities accepted as collateral.
The changes will help to more accurately assess risks, will help to level the playing field for competition, and will also support balanced growth in lending to the economy.
To make it easier for banks to adapt to the new regulations, some of the innovations will only apply to new loans, that is, those issued after August 18, 2025.
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