Improving regulatory approach to bank holding companies

The Bank of Russia specifies the methodology for calculating the share of banking activities in a bank holding company’s overall operations.  The regulator also sets forth the procedure whereby a bank holding company's parent organisation, of which securities are admitted to organised trading (exchange-listed securities), shall disclose its interim consolidated financial statements and the relevant auditor’s report. The changes, previously discussed among market participants, aim to further improve the transparency of bank holding company operations.

 They are detailed in the following Bank of Russia ordinances officially published on 28 February 2018:

•  Ordinance No. 4618-U, dated 27 November 2017, ‘On the Methodology for Calculating the Share of Banking Activities in the Overall Operations of a Bank Holding Company'
• Ordinance No. 4619-U, dated 27 November 2017, ‘On the Procedure and Timeframe for Bank Holding Companies to Disclose and Submit Consolidated Financial Statements’
• Ordinance No.4620-U, dated 27 November 2017, ‘On Amending Bank of Russia Ordinance No. 3780-U, Dated 9 September 2015, ‘On the Procedure for Notifying the Bank of Russia of the Establishment of a Bank Holding Company, the Formation of a Management Company of a Bank Holding Company and its Granted Powers’.

The new regulations become effective ten days after their official publication.