In the third quarter of 2024, the Bank of Russia released a report detailing discussions about a new liquidity coverage ratio and a draft regulation. This new ratio is set to become mandatory for all systemically important banks starting in January 2026.
The regulator has broadened conditions for incentive-based regulation, focusing on projects related to technological sovereignty and structural economic adaptation. This initiative aims to boost bank financing for priority projects.
Additionally, a mortgage standard has been introduced by the regulator to address unfair practices in this sector. It will be compulsory for all credit institutions beginning January 1, 2025.
The limit on the total cost of credit (TCC) in the mortgage segment has been lifted until the end of the first quarter of 2025. This change allows banks to adjust rates without breaching statutory TCC limits.
By year-end, the regulator plans to present a revised methodology for identifying systemically important banks based on their economic impact. This approach is expected to improve accuracy in determining such banks. The Bank of Russia will also publish a report on concentration risks policy discussions with market participants, outlining future steps in this area.
Furthermore, market participants will be invited to discuss finalized approaches to assessing credit risk based on bank proposals. These include provisioning for retail loans and factoring and a new model for evaluating developers using escrow accounts.
The regulator continues working on changes related to capital adequacy ratio calculations, including adopting finalized approaches by all banks with universal licenses.
More information can be found in the Banking Regulation Review for Q3 2024.