The Bank of Russia has submitted a document to the Russian Ministry of Justice that sets out the procedure for calculating the national liquidity coverage ratio (NLCR) for systemically important credit institutions (SICIs). The NLCR is intended to replace the Basel LCR, which has been in effect since 2016. According to the Bank of Russia, the new ratio takes into account local regulatory specifics, with calibration based on data from domestic banks and high-quality liquid assets (HQLAs) defined by assets traded on the Russian market.
Among several changes in methodology, there are new restrictions on investments in securities to reduce HQLA concentration risks. Assets will only be considered HQLA if a bank holds no more than 30% of an issue. This requirement will be phased in until the end of 2027. Additionally, banks will not be allowed to use dormant nostro accounts to increase their liquidity ratios. Outflow rates have also been adjusted; for example, outflows related to Federal Treasury funds will total 45% after a transition period ending January 1, 2027.
The NLCR is scheduled to take effect on October 1, 2025. To support a smooth transition, the minimum value for the new ratio will be set at 80% in 2025 and will rise to 100% starting January 1, 2026. The Bank of Russia states that this change should not create difficulties for banks, as under the NLCR calculation method they are expected to benefit by at least an additional 25 percentage points compared with current Basel LCR requirements. Since July 1, 2025, banks have been able to maintain sufficient liquidity for Basel LCR compliance at a level of 60% without using irrevocable credit lines (ICLs), and by January 1, 2026, they must increase liquidity levels further.
Compliance with NLCR will remain flexible. SICIs may continue using ICLs but only in a modified form designed to cover small volatility—no more than 20 percentage points—in their ratios. Banks must meet most liquidity requirements independently. The Bank of Russia plans to present updated orders detailing these parameters.
A new NLCR reporting form has also been developed and discussed with banks and is expected to become effective in January 2026 as amendments are made to Bank of Russia Ordinance No. 6406-U. Until then, credit institutions will report data on the new ratio using existing Basel LCR forms.