Bank of Russia extends loan term to apply reduced risk weight to risk concentration ratios

The regulator has decided to extend the option of applying the reduced risk ratio of 50% when calculating the risk concentration ratios (N6, N7, N21, and N25), provided that banks increase loan portfolios and irrevocable letters of credit issued to non-financial organisations (a group of related non-financial corporate borrowers) by over 10 billion rubles (excluding foreign currency revaluation) until the end of 2022 (initially until 31 May 2022). This measure is intended to simplify the loan transfer between banks and, in general, to maintain the potential for lending to the economy.

The effective period of the reduced risk concentration ratios remains unchanged — through 31 May 2025.

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31.05.2022 20.30.00