The Bank of Russia is actively developing and expanding the scope of applied macroprudential tools that now includes the following:
Debt service-to-income ratio
The key change in regulation approaches is the implementation of the requirement for calculating a borrower’s debt service-to-income (DSTI) ratio. This requirement is applicable to credit institutions (except non-bank credit institutions entitled to transfer funds without opening bank accounts and conduct other related banking operations).
Since 8 October 2018, the Bank of Russia has applied a new approach to macroprudential regulation. In accordance with this approach, risk ratios on certain asset types established by Bank of Russia Instruction No.
National countercyclical buffer
The Russian macroprudential regulation applies the national countercyclical capital buffer for banks’ capital adequacy ratios (such instrument as the countercyclical buffer is used by all regulators pursuant to the Basel III requirements).