Central bank says moves to proportional banking regulation in 2018

MOSCOW, Jan 9 (PRIME) -- The central bank will introduce proportional banking regulation in in 2018, it said in a release on Monday.

“The banks will need to decide this year either to increase capital to 1 billion rubles to acquire a universal license, or move to a basic license with a minimal capital of 300 million rubles. Transformation is to be finished by January 1, 2019,” the release read.

“Banks with a basic license will get significant easing of regulatory requirements and simplified reporting standards.”

The central bank will also introduce a second liquidity ratio envisaged by the Basel framework, or a net stable funding ratio (NSFR), at 100%, for systemically important banks, which account for over 60% of the country’s banking sector. The banks’ liquidity coverage ratio (LCR) is raised to 90% from 80% from January 1.

Capital adequacy markups are increased to 1.875% for all banks, and by an additional 0.65% for 11 systemically important banks.

All Russian banks will have to provide reporting under the International Financial Reporting Standards (IFRS) 9.

The Deposit Insurance Agency (DIA) will increase payments to the Deposit Insurance Fund to 0.15% from 0.12% of the average quarter account balance.

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