Banking Regulation Review: results and plans

In the coming months, the Bank of Russia plans to:

• Discuss the concept of new requirements for subordinated instruments with market participants. These requirements are expected to help banks recover losses more effectively.
• Publish the updated approaches to credit institutions’ internal capital adequacy assessment processes in order to evaluate their regulatory impact.

The initiatives implemented earlier include the following:

• All banks with a universal licence transitioned to a finalised more risk-sensitive approach to calculating capital adequacy ratios. Furthermore, important decisions related to the assessment of credit concentration were stipulated.
• The updated requirements for banks’ financial stability recovery plans were submitted for state registration. The Bank of Russia detailed the stress scenario parameters and established the indicators for launching financial stability recovery measures for banks to get prepared to crisis situations in advance.
• The regulator released the Promising Areas of Banking Regulation and Supervision Development, the report on the plans to change the approaches to assessing risks when lending for public-private partnership projects, and the concept for the development of the method to assess banks’ economic situation.

More details are available in the Banking Regulation Review for 2025 Q2.