Bank of Russia publishes draft procedure to select credit institutions for RUONIA membership

As part of its efforts to administer the RUONIA interest rate (hereinafter, RUONIA), the Bank of Russia has elaborated and published for discussion a draft document describing the procedure for selecting credit institutions when considering amendments to the list of RUONIA member banks (hereinafter, the Procedure).

The Procedure has been compiled in line with the Principles for Financial Benchmarks of the International Organization of Securities Commissions (hereinafter, the IOSCO) and takes into account the need to streamline the process of selecting a list of member banks to form an interest rate indicator. The document seeks to set up a due foundation for and increase the representation properties of the interest rate indicator of interbank market by changing the list or RUONIA member banks. The Procedure contains a formalised approach to forming the list of RUONIA member banks, the description of procedures for preparing the calculation base, and calculating indicators. These indicators are further used to select participants for calculating the indicator. During the elaboration of the documents, preliminary consultations were held with the Expert Council on Indicators and Rates of the Self-regulatory Organisation National Finance Association. As a result, recommendations were received for approval as part of the expert opinion. The Council provides expert and consulting support concerning the methodological administration of RUONIA.

Another new element of the Procedure is a description of the regular monitoring of the state of the interbank lending market in order to assess the need to update the list of RUONIA participants.

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26.04.2021 19.00.00