Financial Sector Overview
Bank of Russia
BANK OF RUSSIA: OVERVIEW
The Central Bank of the Russian Federation
12
NEWSLETTER (2)
Key news from the Russian financial market
28 December 2018
21 December 2018
21 December 2018
14 December 2018
1 October 2018
25 July 2018
24 July 2018
23 May 2018
The Bank of Russia has permitted Raiffeisenbank to use internal ratings-based (IRB) approach for the purpose of
calculating regulatory capital (effective 1 Feb 2019).
Introduction of individual investment advisor as a new class of market players. Investment advisory services are
subject to regulation. Services shall be provided on the basis of a contract and customer investment profile, taking
into account the customer's investment experience, targets and risk appetite.
The Bank of Russia raises risk weights on unsecured consumer loans extended after 1 April 2019 with the effective
interest rate of 10% to 30%.
The Bank of Russia decided to resume regular foreign currency purchases in the domestic market under the fiscal
rule that were suspended in 2018, starting 15 January 2019.
The Bank of Russia completed transition to the new macroprudential regulation mechanism by introducing risk
weight add-ons for capital adequacy calculation by credit institutions while bringing standard risk weights on
assets in line with Basel III requirements (effective 8 Oct).
Risk weight add-ons for mortgage loans and loans for construction co-funding with LTV > 80% were set at 100%,
i.e. 200% risk-weight will be applied to such loans extended after 1 January 2019. The buffer will only be effective
as long as the loan-to-value ratio exceeds 80%.
ā The countercyclical capital buffer for Russian credit institutions is retained at 0% of risk-weighted assets.
The Bank of Russia introduces 16 criteria of economic relations between related party-borrowers to calculate N6.
Higher requirements introduced to the minimum authorized capital for insurers: RUB 450 mln for life insurers, RUB
300 mln for personal and property insurers and RUB 600 mln for reinsurers.
The Bank of Russia raises risk weights on FX loans and securities, effective from July 1, 2018 to: 110% (from 100%)
for exporters, 150% (from 130%) for real estate purchase, 130% (from 110%) for other FX corporate loans.View entire presentation