Refining approach to assessing banks’ economic situation: updated concept for discussion
Following consultations with market participants and internal testing, the Bank of Russia has refined the approach to assessing banks’ economic situation, published a year ago. The updated method ranks banks by risk level more precisely than the previous concept. In the future, transitioning to the new method will allow the most reliable banks to pay smaller contributions to the compulsory deposit insurance fund and will enable the Bank of Russia to focus its supervisory efforts on less resilient market participants.
The new approach clarifies the procedure for determining a bank’s final classification group and reduces the number of indicators used. The key changes include replacing the complicated scoring and weighting system with an assessment of the aggregate impact of risks on capital and shifting to the assessment of a bank’s economic situation on a consolidated level. The updated method has become more accurate, and the interpretability of its results has improved.
The regulator plans to start using the new approach in 2029.
More details are available in the consultation paper Updated Approach to Assessing Banks’ Economic Situation. The Bank of Russia will discuss the revised concept at the Financial Congress, which will take place in St Petersburg on 1–3 July 2026.