Translation. Region: Russian Federation –
Source: Central Bank of Russia
An important disclaimer is at the bottom of this article.
The Bank of Russia has developed new approaches for how banks account for their subsidiaries and affiliates when calculating group ratios. This will improve the accuracy of group risk assessments and, consequently, the capital buffer required to cover these risks.
Among the main changes:
All non-financial companies are excluded from the group's perimeter to avoid mixing non-financial risks with banking risks; non-state pension funds and insurance companies are not consolidated, as they have specific risks, and their capital cannot always be used by the parent bank to cover its risks; a list of financial institutions subject to consolidation (credit institutions, leasing and factoring companies, microfinance organizations, management companies, brokers, dealers, specialized financial companies) is fixed, so that non-financial businesses do not fall within the consolidation perimeter under the guise of financial ones; minimum materiality criteria (i.e., the scale of the business of subsidiaries and dependent organizations – in terms of assets, capital and profit) are established for mandatory consolidation, so that all significant financial businesses are taken into account in the group standards.
The regulatory framework is planned to be developed in 2026, with the new standards coming into force as early as the fourth quarter of 2027. To help banks adapt to regulatory changes, individual decisions are proposed to be introduced in stages.
Read more in new concept Regulation of group standards. Responses to the questions presented in the report, as well as comments and suggestions, can be sent to the Bank of Russia no later than March 4, 2026.
Preview photo: Andrii Yalanskyi / Shutterstock / Fotodom
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