Bank of Russia changes irrevocable credit line parameters
- Since systemically important credit institutions will be required to comply with the national liquidity coverage ratio (LCR)1 instead of the Basel III LCR,2 from 30 October 2025, the fee for the right to use an irrevocable credit line (ICL) has been set at 1% per annum of the ICL limit included in the national LCR calculation.
- The one-year term for ICLs has been cancelled.
Furthermore, the ICL mechanism has been changed. The approach to using an ICL to comply with the ratio has also been revised. Now, it will cover only a small part of the ratio’s volatility (up to 20 pp). The fee for an ICL will be determined based on the number of days when a bank actually used the ICL to comply with the ratio as well as on the ICL amount used.3
The Bank of Russia expects banks’ demand for ICLs to be quite low. The national LCR takes into account the specific features of the Russian financial market, particularly in terms of the composition of highly liquid assets. The ICL mechanism has been revised to provide banks with flexibility in managing their liquidity by mitigating its temporary, short-term fluctuations that are not threatening financial stability. The fee calculation procedure should encourage banks to comply with the ratio using market instruments.
1 Bank of Russia Regulation No.
2 Bank of Russia Regulation No.
3 Bank of Russia Order No. OD-2195, dated 6 October 2025, ‘On Approving the Procedure for Calculating the Limit for an Irrevocable Credit Line and the Procedure for Calculating the Fee for the Right to Use an Irrevocable Credit Line and on Harmonising Certain Bank of Russia Orders’.
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06.10.2025 18.47.00