Banking regulation: main events in 2024

In particular, from March, the regulator cancelled the easing related to the liquidity coverage ratio (LCR), while banks were allowed to use Bank of Russia irrevocable credit lines (ICLs). Amendments to the LCR calculation expanding the range of liquid assets will become effective from October, which will reduce banks’ costs for compliance with the LCR to a certain extent.

Improvements in the regulation remain in the focus of the Bank of Russia’s attention. Specifically, in April 2024:

• The Bank of Russia presented the concept for differentiating the insurance compensation limit and the rates of contributions to the Compulsory Deposit Insurance Fund depending on deposit types and maturities. The regulator expects that this will encourage banks to offer higher returns on long-term savings, while the overall burden on the sector will not increase.
• The Bank of Russia resumed the collection of information about the organisation of internal capital adequacy assessment processes. The form was improved in order to enhance its analysability and simultaneously simplify the filling-in process for banks.
• The regulator released the modified requirements for financial stability recovery plans (FSRPs) to evaluate the regulatory impact. The modifications are intended to make FSRPs a really efficient tool in crisis conditions, including through more active involvement of owners in their development. The new requirements are to become effective in late 2024—early 2025.

Furthermore, the Bank of Russia updated the status of the implementation of the Promising Areas of Banking Regulation and Supervision Development published in December 2022 and presented new topics that the regulator plans to focus on in the near future.