Method to classify banks as systemically important: new concept for discussion
The Bank of Russia has devised a new method to classify credit institutions as systemically important. This method will factor in the number of clients, ecosystem maturity, banks’ importance in the payment services market, etc.
The larger a bank is and the more it influences the financial system and the economy, the higher its resistance to risks must be, which requires a higher capital adequacy ratio (CAR). Hence, systemically important credit institutions (SICIs) will be grouped depending on the level of the add-on to their CARs (currently, SICIs are not divided into groups and the add-on equals 1% for all of them).
The regulator plans to prepare a regulatory framework and make amendments to banks’ reporting in
More details on classifying SICIs are available in the new concept of the method. The Bank of Russia welcomes feedback on the consultation paper through 27 June 2025.