The Bank of Russia has issued a new edition of the Banking Regulation Review, highlighting several regulatory changes introduced in 2024 to improve liquidity management. Since the beginning of the year, the regulator has made significant adjustments.
In March, the easing related to the liquidity coverage ratio (LCR) was canceled, allowing banks to use Bank of Russia irrevocable credit lines (ICLs). Additionally, amendments set for October will expand the range of liquid assets considered in LCR calculations, which is expected to lower compliance costs for banks.
Regulatory improvements continue to be a priority for the Bank of Russia. In April 2024, it unveiled a concept to differentiate insurance compensation limits and contributions to the Compulsory Deposit Insurance Fund based on deposit types and maturities. This move aims to incentivize banks to offer better returns on long-term savings without increasing the sector's overall burden.
The Bank of Russia also resumed collecting information on internal capital adequacy assessment processes with an improved form designed for better analysis and easier completion by banks. Furthermore, modified requirements for financial stability recovery plans (FSRPs) were released to enhance their effectiveness during crises by involving owners more actively in their development. These new requirements are scheduled to take effect in late 2024 or early 2025.
Moreover, updates were provided on the implementation status of initiatives outlined in December 2022 under Promising Areas of Banking Regulation and Supervision Development. The Bank also introduced new topics it intends to address soon.