Bank of Russia developed new approach to determining systemic banks
MOSCOW, May 22. /TASS/. The Bank of Russia has developed a new methodology of determining systemic significance of credit institutions with its differentiation into five groups, the regulator said in its reported posted on the website for the discussion with the market.
The new methodology excludes the assessment of international activity but adds the assessment of regional significance catering fir presence in the rural areas. The first revision of the list of systemic institutions under the new methodology is planned for 2027. Phased implementation of different buffers will start in 2028.
"Considering normalization of the situation in the banking sector and the proactive withdrawal from the softening regime, the time has come to return to a more sound revision of the methodology for systemic credit institutions," the regulator said. The systemic significance buffer is called to cover higher risk the financial system and the economy may sustain in case the systemic bank loses financial stability, it added.
