On meeting of Bank of Russia Expert Board on Financial Asset Securitisation

The Bank of Russia Expert Board on Financial Asset Securitisation (hereinafter, the Expert Board) has started its activity. The first meeting considered the application of international and national ratings in asset securitisation. Participants of the Expert Board emphasised that Russian and international rating scales should be harmonised with a view to develop national rating agencies.

Expert Board members viewed the criteria for including asset-backed securities issued in compliance with Federal Law No. 379-FZ, dated 21 December 2013, and unrated securities in the Bank of Russia Lombard List. The discussion also covered approaches to institutionalisation of investment securities.

Special focus was made on the calculation of required ratios and capital burden of credit institutions when transferring securitisation risk, taking account of the underlying asset risk. The Expert Board discussed a draft amendment to Bank of Russia Ordinance No. 3090-U, dated 25 October 2013, ‘On Calculating Banking Groups’ Capital, Required Ratios and the Values (Limits) of Open Foreign Exchange Positions’ (taking account of the upcoming amendments and addenda) on consolidating mortgage agents and special purpose vehicles and weighting risk of asset-backed securities when calculating capital adequacy ratios of banking groups.

The Board will hold the next meeting in September 2015.

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10.08.2015 00.00.00