The Bank of Russia to centralise off-site banking supervision

The Bank of Russia has launched from 1 March 2017 the centralisation of off-site banking supervision. It will be implemented step-wise and completed in 2018. One of the key novelties is the establishment of the Current Banking Supervision Service (CBSS). It will gradually take up supervisory functions of the Bank of Russia’s regional divisions.

The overhaul of off-site banking supervision will improve its quality and efficiency, ensure unified approaches and standards across the country, and advance the skills of supervisors and their personal accountability.

Credit institutions supervised by the Bank of Russia Main Branches for the Central Federal District and the Far East will be transferred first, by 1 July this year. After that the regulator will progressively, every six months, cede the supervision over other credit institutions to the CBSS.

After the reorganisation off-site banking supervision will be mainly represented by three structural divisions: the CBSS, the Systematically Important Banks Supervision Department (SIBSD) and the Banking Supervision Department (BSD).

In commercial banks the CBSS and the SIBSD would be called the front office of banking supervision, which deals with different market segments – systemically important credit institutions (SIBSD) and other banks (CBSS). The BSD will act as a middle office to provide organisational and methodological support and control the front office.

The Bank of Russia Chief Inspection will be involved in supervision when it is deemed impossible to pass a professional judgment without back-up information obtained on site.