The Bank of Russia has introduced a new concept for supervisory stress testing of banks, aiming to strengthen the resilience of the country’s banking sector. According to the central bank, annual supervisory stress tests will become mandatory for all systemically important banks starting in 2028. The results from these tests will play a role in assessing each bank’s economic position and determining their required contributions to the Compulsory Deposit Insurance Fund.
Additionally, outcomes from the stress tests will be incorporated into internal capital adequacy assessments, which could lead to some banks being required to establish an additional capital buffer. The Bank of Russia stated, “The new approach will encourage credit institutions to accumulate a capital buffer to independently overcome potential stress. This will enhance the banking sector’s overall resilience.”
A consultation paper titled “Concept for Supervisory Stress Testing of Credit Institutions” provides further details about the proposed framework. The Bank of Russia is seeking feedback and suggestions on this document from market participants until October 17, 2025.
