Translation. Region: Russian Federation –
Source: Central Bank of Russia
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The regulator will limit the risks of banks' investments in immobilized assets (IA)—non-core assets that have no repayment requirements, are illiquid, and carry equity risks. These include investments in property, excess fixed assets, and ecosystems.
To achieve this, a risk-sensitive limit (RSL) will be introduced to measure the concentration of immobilized assets. The bank will be required to cover immobilized assets exceeding the RSL with capital. As a result, the risks of excessive investment in such assets will be shifted from depositors and creditors to the bank's shareholders.
The Bank of Russia has developed draft regulations, which defines the methodology for calculating the RCL. The draft stipulates that banks will classify IAs into one of three groups with an immobilization coefficient ranging from 1 to 3, depending on the riskiness of the asset (its type, liquidity, and length of time on the balance sheet).
The maximum value of the RCL indicator is set at 25% of banks' capital. The draft also introduces a 5-year (from 2027 to 2031) phased schedule (100–85–70–50–25%) for achieving the target RCL level.
More information about the RCL can also be found in the publication published in May 2025 Bank of Russia report.
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