Cbanker: Russia can demand use of IRB approach by large banks

SOCHI, Oct 11 (PRIME) -- The Internal Ratings-Based (IRB) risk assessment approach can become obligatory for Russia’s systemically important banks, Deputy Chairman of the central bank Vasily Pozdyshev said at the Finopolis forum late on Thursday.

“We have supported a proposal of a possible switch of the largest banks, for instance, systemically important banks, to IRB. We think that a period of at least five years is needed because banks need to prepare, they will have to have to create a database. That would be the right thing to do,” Pozdyshev said.

The official said that the change would require amendments to legislation because IRB is now voluntary for banks.

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