The Bank of Russia has announced that it will not extend certain support measures for banks that are set to expire in 2024. These measures, which were implemented as part of an anti-crisis strategy, have reportedly fulfilled their intended roles. The central bank will instead focus on integrating lessons learned from the crisis into regulations specific to the Russian banking sector.
Among the measures being canceled is the option to calculate concentration ratios using a reduced risk weight for sanctioned borrowers. This measure allowed banks to lend to sanctioned entities despite secondary sanction risks. Banks will need to adjust to this change by January 1, 2025, with new guidelines on calculating risks and concentration ratios provided.
Another measure being withdrawn is the option not to downgrade loans and other assets if the financial position of sanctioned corporate borrowers deteriorates due to sanctions. Introduced in 2018, its removal is expected not to significantly impact credit institutions' required ratios.
Some temporary extensions are planned through December 31, 2025. These include not disclosing sensitive information related to sanctions risks and allowing certain statutory requirements to be omitted when lending in new territories of the Russian Federation.
The Bank of Russia also plans several regulatory incorporations through 2032, including provisions for blocked unrecoverable assets and differentiated approaches based on collateral quality categories.
These changes reflect ongoing adjustments in response to evolving economic conditions and aim at maintaining financial stability while adapting regulatory frameworks as necessary.
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