The central bank has introduced new measures to support the financial sector

Against the background of hostile actions by foreign countries, the Bank of Russia has taken a number of additional measures to support the financial sector and its ability to lend to the Russian economy.

New Central Bank support measures:

  1. Coordination of transactions for the transfer of companies of companies leaving Russia to new owners. Such a transfer will help preserve jobs and rebuild the economy.
  2. The Bank of Russia has excluded the application of a risk factor of 150% for claims in rubles and foreign currency against credit institutions in Russia and Belarus when calculating ratios according to the standard approach.
  3. The 150% risk factor will also not be applied in accordance with the requirements for Belarus and the National Bank of the Republic.
  4. Providing opportunities for credit institutions to defer the creation of reserves for potential losses in relation to:
  • claims on NCO NCC (JSC), NCO JSC NSD in connection with the suspension of foreign depositaries holding Eurobonds of Russian issuers due to restrictive measures;
  • funds blocked due to unfriendly actions of foreign countries and international organizations in relation to Russia.
  • Providing credit institutions with the possibility of assessing the credit risk of legal entities issuing securities, creating reserves for possible losses and calculating mandatory ratios, in case of limited or inaccessible financial information subject to disclosure and provision of up-to-date financial information. July 2021
  • Releasing the structural liquidity ratio (net stable funding ratio) N28 (N29) to maintain the ability of systemically important credit institutions to lend to the economy in the event of changes in the structure and maturity of liabilities and the blocking of certain assets.
  • The Central Bank also allows non-compliance with the capital adequacy ratio. In addition, the Central Bank recommends refusing to pay dividends in 2022 to mark-up banks and non-credit financial institutions.

    At the end of March, the Central Bank of Russia announced an increase from 10 million to 50 million rubles. loans to small and medium-sized enterprises. Earlier, the Central Bank reported that in the current situation, it is “reasonable” to separate interest rates on loans from key and set them at fixed values.

    For more information on business support measures, see Kommersant’s article “Banks were allowed to take risks”.

    Daria Erozbek

    Elvira Parkinson

    "Alcohol scholar. Hardcore tv junkie. Wannabe bacon enthusiast. Twitter fanatic. Subtly charming travel guru. Pop culture specialist."

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