Banking regulation: innovations in 2023 Q4
The Bank of Russia has prepared a package of amendments to the credit risk assessment. The regulator is introducing important approaches to making provisions expected by the banking community, including clarifying the requirements for assessing retail loans and simplifying the assessment of factoring.
The concept of a new liquidity coverage ratio has been published for discussion. The ratio parameters are adjusted based on statistics of the Russian sector, which is important for more precise management of banks' liquidity risk.
The market has been offered a new procedure for calculating and setting open currency position (OCP) limits, as well as updates enabling more risk-sensitive management of market risk. They aim to dedollarise banks’ balance sheets and adequately cover market risks with capital. The work is underway for state registration of regulations.
In addition, an important phase of preparations for updating financial stability recovery plans (FSRP) is being completed. In the near future, it is planned to discuss the revised requirements with the market.
Details are available in the Banking Regulation Review.