The Bank of Russia has introduced a new method to classify credit institutions as systemically important. This approach will consider factors such as the number of clients, ecosystem maturity, and the banks’ significance in the payment services market.
Larger banks with greater influence on the financial system and economy are expected to have higher resistance to risks, necessitating a higher capital adequacy ratio (CAR). Consequently, systemically important credit institutions (SICIs) will be categorized based on their CAR add-on levels. Currently, SICIs are not divided into groups, and all have an add-on of 1%.
The regulator intends to establish a regulatory framework and amend bank reporting between 2025 and 2026. The aim is to revise the list of SICIs using this new method by 2027. Starting in 2028, the Bank of Russia plans to implement a schedule for SICIs to gradually increase their add-ons to the designated level, allowing each group sufficient time to bolster their capital.
Further details on classifying SICIs can be found in the new concept of the method. The Bank of Russia is open to feedback on the consultation paper until June 27, 2025.
