Bank of Russia to update methodology for defining systemically important banks
The Bank of Russia intends to make changes to its methodology for generating the list of systemically important credit institutions so that the updated approach enables more precise accounting treatment of banks’ international operations.
This criterion, currently accounted separately and failing to fully reflect recent changes in banks’ global activities, will be included in a consolidated systemic importance indicator.
In parallel, under the draft Bank of Russia ordinance, weight assignment will change for other indicators (bank size, interrelation with other financial companies, household funds on deposit), which are components in the consolidated indicator.
The Bank of Russia is planning to launch the updated methodology beginning in 2021. The updated methodology is expected to entail no changes in the list of systemically important credit institutions.