The Bank of Russia has announced changes to the parameters for irrevocable credit lines (ICLs) for systemically important credit institutions. Beginning 30 October 2025, these institutions will be required to follow the national liquidity coverage ratio (LCR) instead of the Basel III LCR.
Under the new rules, the annual fee for holding an ICL will be set at 1% of the ICL limit that is included in the calculation of the national LCR. The previous one-year term requirement for ICLs has been removed.
Additionally, adjustments have been made to how ICLs can be used in meeting liquidity requirements. The revised mechanism limits their use to covering only a small portion of volatility in the ratio—up to 20 percentage points. The cost associated with using an ICL will now depend on both the number of days a bank actually uses it and on the amount used.
“The Bank of Russia expects banks’ demand for ICLs to be quite low. The national LCR takes into account the specific features of the Russian financial market, particularly in terms of the composition of highly liquid assets. The ICL mechanism has been revised to provide banks with flexibility in managing their liquidity by mitigating its temporary, short-term fluctuations that are not threatening financial stability. The fee calculation procedure should encourage banks to comply with the ratio using market instruments,” stated officials from the Bank of Russia.
These changes reflect efforts by regulators to tailor liquidity standards and supporting mechanisms more closely to domestic conditions while encouraging reliance on market-based solutions.
