Brokers to recalculate capital adequacy ratio
When calculating their capital adequacy ratio professional securities market participants will be allowed to apply a risk reducing factor for bonds aimed at financing projects of technological sovereignty or structural adaptation of the national economy. A draft ordinance to this effect has been prepared by the Bank of Russia for public discussion.
Additionally, market participants will not be able to use blocked assets to cover credit and market risks. The value of such assets will be deducted from the capital.
Some changes take into account the existing law enforcement practice, which specifically provides for a single cascading approach to the selection of credit and market risk rates. If clearing houses do not calculate such rates for bonds, shares and foreign currency, market participants shall apply adjustment factors set by the Bank of Russia.
The capital adequacy ratio is calculated monthly as the capital to risk-weighted assets ratio (taking into account the adjustment factor) and should be maintained on a permanent basis. Since 1 October 2022, its minimum value has been set at 8%.