Bank of Russia proposes to amend requirements for NPFs’ stress testing
The amendments are aimed at improving the process of risk assessment at non-governmental pension funds, which is related to the fulfilment of their obligations to customers. This will help better assess the financial resilience of these institutions. The draft Bank of Russia ordinance has been released for public discussions.
To ensure a more precise demonstration of the financial standing of non-governmental pension funds, it is proposed to consider not only their fees and expenses arising from the investment of funds, but also the general running costs which they bear during the execution of non-governmental pension provision agreements and mandatory pension insurance contracts.
Furthermore, the procedure for calculating the value of NPF assets is supplemented with new methodologies regarding certain instruments, namely inflation-indexed bonds, floating coupon bonds linked to the RUONIA rate, and mortgage-backed bonds. As such, it is intended to include in various stress testing scenarios a specific procedure for forecasting the value of assets used in projects related to the technological sovereignty and/or structural adaptation of the Russian economy.
The document also specifies the cases and dates of stress testing following the publication of respective scenarios prepared by the Bank of Russia.
The Bank of Russia will accept comments and suggestions until 7 July 2023 inclusive.