1 Mar 2024 14:17

Russian Central Bank to consider possibility of implementing new standard for interest rate risks of banks

MOSCOW. March 1 (Interfax) - The Central Bank of Russia intends to consider the matter of implementing a separate standard for limiting the interest rate risks of banks, Central Bank Governor Elvira Nabiullina said at a meeting of banks with the regulator, organized by the Association of Banks of Russia.

"We plan this year to publish the concept of interest rate risk management for discussion. We will most likely first follow the path of clarifying recommendations and finalizing indicators for assessing the economic situation of banks. We think that it is possible in the future to introduce a separate standard, a limit for interest rate risk, or include it in the capital adequacy standard," Nabiullina said.

Central Bank analysis shows that banks account for interest rate risk in different ways, though in general manage it through high margins.

"However, given the fact that banks have ever more long-term assets, including mortgages and project loans, and liabilities are still short, the risk could accumulate and lead to losses," Nabiullina noted.