RUONIA represents an interest rate indicator calculated as the weighted average interest rate used by Russian credit institutions, included in the list of RUONIA participants approved by the Bank of Russia (the list of RUONIA banks), to conduct unsecured overnight ruble lending operations.
The list of RUONIA banks is compiled from credit institutions selected on the basis of a set of features, such as financial parameters, credit ratings, level of activity in the interbank market, etc.
Amendments to the methodology of RUONIA and the list of RUONIA banks are to be coordinated with the Committee for RUONIA Supervision and approved by the Bank of Russia Governor.
The Bank of Russia has a well-established multi-level system of control ensuring the quality of data underlying the RUONIA rate. Original information is collected from the RUONIA panel banks in the form of supervisory reporting. Its collection is the remit of the Information Technology Department and the regional branches of the Bank of Russia.
The information received is processed automatically. If control rules are breached, supervisory reporting is rejected, and the report acceptance system automatically sends a notice of rejection to the credit institution specifying the error due to which the reporting cannot be accepted. The Statistics Department verifies whether the data collection is complete and credit institutions — counterparties provide symmetric information on transaction terms. Should any error be detected, banks are requested to resubmit their reporting.
The Bank of Russia elaborates requirements for banks’ supervisory reporting and imposes sanctions where its submission is delayed. In 2019, the Russian Federation established criminal liability for invalid reporting, which can involve both fines and imprisonment from three to seven years with the deprivation of the right to hold certain positions or to carry out certain activity for a period of up to three years. Criminal liability is aimed at ensuring discipline in reporting, which will provide timely, complete and valid data for RUONIA calculation.
The RUONIA rate is also calculated automatically. The software does not allow manual input of any changes to original data or calculation results. After RUONIA calculation is accomplished, its value is emailed to the robot to be automatically uploaded and published on the Bank of Russia website. After being published, data on RUONIA become available to external information providers, including news agencies.