Bank of Russia approves temporary procedures for measuring operational risk

The Bank of Russia made a decision to introduce temporary procedures for credit institutions to measure operational risks in accordance with Regulation No. 744-P¹ over the period through 31 December 2023.

The regulator expands the list of credit institutions, which, over this period, will be entitled to an early switch to the advanced calculation of operational risks using the internal loss multiplier (ILM). Thus, over the period through 31 December 2023, banks included in classification subgroup 2.2 of group 2² as of the date of the notification on the application of the estimated ILM, shall be also entitled to submit such notification to the Bank of Russia. Concurrently, credit institutions will be entitled to schedule the launch of the estimated ILM application for the first day of any calendar month.

Additionally, credit institutions, obliged to measure operational risks as of 1 January 2023 as stipulated by Regulation No. 744-P, shall be entitled to make a decision to measure operational risks over the period through 31 December 2023 in accordance with Regulation No. 652-P³ on condition that, as of 1 January 2023, their commission income (expenses) is 50% or more of the business indicator value. When making such decisions, credit institutions shall inform the Bank of Russia thereof strictly within the following day.

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06.02.2023 14.38.00