List of securities banks with a basic licence may transact in, to expand
The regulator plans to permit banks with a basic licence to transact in bonds issued by companies whose shares are included in the top tier quotation list of an exchange. However, such exchange should be partially owned by the Bank of Russia, according to the regulator’s draft ordinance.
Banks will be able to conduct operations with bonds of other issuers provided the bond issue (or issuer) has a credit rating assigned to it at a level of, at least, ‘ruAA-’ on the rating scale of Expert RA or AA-(RU) on ACRA scale. Moreover, the draft will provide for a wider range of opportunities for banks with a basic licence to transact in promissory notes.
Thus, the Bank of Russia has responded to the opinion of market participants that banks with a basic licence need to have a wider range of investment instruments to choose from. However, the regulator continues to apply conservative approaches to risks such bank may take.
If a bank with a basic licence has in its portfolio some securities which become ineligible, such bank may transact in such securities within a certain transition period.