Requirements for the risk and capital management system: Basel standards

The Bank of Russia has prepared a draft ordinance ‘On Amending Bank of Russia Ordinance No. 3624-U, Dated 15 April 2015, ‘On the Requirements for the Risk and Capital Management System of a Credit Institution or a Banking Group’ in order to bring the banking regulation in line with the standards established by the Basel Committee on Banking Supervision documents. The draft is published on the Federal web portal of draft regulatory documents at regulation.gov.ru.

The draft clarifies requirements for the management of certain types of risks (interest, market, residual, concentration and counterparty risks) by a credit institution. Internal procedures for assessing capital adequacy with regard to credit, market and operational risks shall address risk factors which are not fully covered by the Bank of Russia methodology used to determine capital requirements for assessing the adequacy of the capital (equity) of a credit institution.

Expert opinions about the draft document shall be submitted from 24 to 30 November.

The ordinance becomes effective 10 days after its official publication in the Bank of Russia Bulletin.