Banking regulation: Q2 trends

The Bank of Russia will update the list of securities which banks with a basic licence may use in their operations in the securities market, writes the information bulletin titled ‘Banking Regulation in 2018 Q2’. The draft ordinance to formalise this is aimed at improving approaches to regulation of banks with a basic licence under proportional regulation and ensuring higher legal certainty as regards the operations of such banks in the securities market. The ordinance is poised to become effective in the fourth quarter of 2018.

The Bank of Russia will also amend the procedure for making loss provisions by credit institutions for loans and similar debts. The proposed amendments are aimed at supporting and developing banks with a basic licence, project finance, small and medium-sized businesses and other realms of the Russian economy. The ordinance is poised to become effective in the fourth quarter of 2018.

Furthermore, amendments to the procedure whereby credit institutions should calculate market risk is to come into force in the third quarter of 2018, while in the fourth quarter of the same year a new version of the regulation on the procedure for calculating operational risk is to take effect.

Drafts of these and other Bank of Russia regulations were posted on the Bank of Russia website to estimate the regulatory effect in the second quarter of 2018.