30 banks to be stress-tested by Bank of Russia in 2021
Credit institutions present the results of their stress tests on the basis of a single scenario and taking into account the regulator’s methodological recommendations.
As noted in the information material on approaches to conducting supervisory stress testing (SST) of banks, it helps assess the financial resilience of the financial sector and individual banks in case of extraordinary, yet realistic, events that have a negative effect on the financial standing of credit institutions.
The Bank of Russia will analyse banks’ calculations and hold consultations with them to coordinate SST findings. In 2021 Q4, the regulator is going to publish a report on stress testing results.
SST methodology and processes are still being established; therefore, in 2021, in addition to assessing the banking sector’s resilience, stress testing will make it possible to clarify the target model of the SST to improve the efficiency of the process, obtain feedback from banks, and prepare recommendations for conducting stress testing next year.
Currently, SST results do not influence directly the capital requirements of individual credit institutions. However, in the future, as the SST process develops, the Bank of Russia will consider the feasibility of using stress testing results when ranking systemic importance add-ons. This measure will increase the financial resilience of banks, including by the formation of additional capital cushion in case of stressful events.