The Bank of Russia has revised its methodology for classifying credit institutions as systemically important. This change aims to categorize these institutions based on their economic impact and differentiate capital buffers accordingly. The new approach is set to be implemented in 2027, with differentiated buffers for capital adequacy ratios being introduced gradually from 2028.
In addition, the regulator has updated the parameters of the risk-sensitive limit (RSL) to regulate investments in immobilized assets. The RSL is expected to take effect in October 2026 and will be phased in over five years.
The Bank of Russia also issued an information letter allowing banks not to downgrade the quality categories of corporate loans restructured in the second half of 2024 and throughout 2025. This decision applies specifically to borrowers experiencing difficulties but who have the potential to regain solvency.
By the end of the second quarter of 2025, the regulator plans to:
– Publish updated approaches for regulating concession project funding. Banks will be able to consider a public partner’s ability—whether state, constituent territory, or municipality—to repay loans if specified by a direct concession agreement. This measure could reduce risk weights for such loans to between 20% and 60%, provided that a public partner with at least an ‘A’ rating is involved. Currently, risk weights predominantly range from 80% to 130%. These regulatory amendments are anticipated to come into force in 2026.
– Draft regulations for discussion on updating how credit risks are assessed for developer borrowers. Risks will vary depending on construction stages, with increased success criteria for projects and consideration given to the financial status of groups linked with developer borrowers. Additionally, if developers offer housing installment plans, this will factor into credit risk assessments. These innovations might become effective in October 2026.
Further details can be found in the quarterly Banking Regulation Review.
