The Bank of Russia has announced the development of a methodology aimed at limiting risks associated with banks’ investments in immobilised assets, which are defined as non-core and illiquid holdings that do not offer repayment guarantees and involve equity risks. These include investments in property, surplus fixed assets, and ecosystem-related assets.
To address these concerns, the regulator will introduce a concentration indicator known as the risk-sensitive limit (RSL) for immobilised assets. According to the Bank of Russia, “Immobilised assets exceeding the RSL should be covered with a bank’s equity. As a result, the risks of excess investments in these assets will be shifted from depositors and creditors to the bank’s shareholders.”
A draft regulation outlining how to calculate this limit has been prepared by the central bank. The proposal states that banks will classify their immobilised assets into three groups based on an immobilisation ratio ranging from 1 to 3. This classification depends on factors such as asset type, liquidity, and duration held on the balance sheet.
The maximum allowable value for a bank’s RSL is set at 25% of its equity. The draft also sets out a phased schedule over five years (2027–2031) for reaching this target level, gradually reducing it from 100% to 85%, then 70%, 50%, and finally 25%.
Further details regarding the RSL can be found in a report published by the Bank of Russia in May 2025.
