Banking regulation: 2020 Q2 bulletin
In the second quarter, the Bank of Russia put in place temporary regulatory and supervisory relaxations for banks, to counter the coronavirus pandemic, reports Banking Regulation, an information bulletin.
The regulator also continued its efforts towards improving the methodology and approaches to banking risk assessment and management. Specifically, a new published regulation covers requirements for operating risk management systems at credit institutions and banking groups. In a similar vein, several amendments were introduced to regulations covering: procedures for calculating credit exposure based on internal ratings; recognition of a bank’s financial position compliant with criteria based on which insurance premiums are paid at higher additional rates; the procedure for credit institutions to make loan loss provisions and for required ratios of banks holding a basic licence.
Furthermore, the regulator presented draft amendments to the procedure for assessing credit exposure related to mortgage loans, for calculating required ratios — to analyse the potential regulatory impact of this draft regulation.
Additionally, released were information letters covering the procedure for calculating required ratios, prudential reserves and regulatory capital (related to VEB.RF guarantees, guarantees of the Russian Federation and dividend payments for 2019), along with updates to the explanatory notes on including financial instruments, of which accounting was changed following IFRS 9 implementation, in the calculation of open forex positions.
