Central Bank likely to delay immobilized asset regulation until 2027 - VTB

MOSCOW. Nov 27 (Interfax) - The Central Bank of Russia is unlikely to introduce immobilized asset regulation in 2026, VTB First Deputy CEO Dmitry Pyanov told Interfax ahead of the "Russia Calling!" forum.

The CBR presented a revised concept for the risk-sensitive limit (RSL) at the end of May, aimed at curbing the risks of bank investments in immobilized assets. The Central Bank modified the composition of these assets, softened the implementation schedule for the limit, and reduced both the immobilization coefficients and the RSL's target level.

The RSL is a cap, expressed as a percentage of a bank's capital, on investments in immobilized assets, above which such investments are considered excessive and must be deducted from capital. In the revised concept, the Central Bank proposed setting the limit at 25% of capital, down from the previously planned 30%, and reducing the maximum immobilization coefficient from 5 to 3.

The CBR plans a five-year phase-in schedule from 2026 to 2030, allowing for a smoother transition to the 25% RSL target than previously outlined. The new regulations are expected to come into force on October 1, 2026.

"We've spent the whole of this year preparing for the new regulations and sold almost all of our hotels. We were ready for the regulations to go into effect on October 1, 2026, as announced, with room to spare. But my current understanding is that implementation will be delayed until 2027. In my opinion, in order to implement these regulations next October, the Bank of Russia needs to have draft regulations for internal discussion now, but they have not yet been published," Pyanov said.

"We recognize the following principle in the thinking of the Bank of Russia, as well as banking regulators in other countries: even if regulation hasn't yet taken effect, but, threatened buy its introduction the supervised entities have changed their behavior for the better, it means the idea is working. As former German Finance Minister Peer Steinbruck once said, the cavalry in Fort Yuma doesn't always have to ride out - sometimes it's enough just for the Indians to know that they are there. That is, it's enough for the supervised entities to know that the Central Bank is working on this regulation, to have an outline of the principles of the new regulation, and to change their behavior based on this information. Currently, as far as we know, the parameters are still being fine-tuned, partly in response to comments from the banking community, so we have no grounds to complain about the delay - the time is being used to develop a more balanced approach," Pyanov said.

He said in the first two years after implementation, when the capital limits will be relatively weak - 100% and 85% - VTB will feel comfortable having already done the groundwork.

The group planned this year to exit a number of non-core assets and sell office buildings from acquired banks, as well as hotels. VTB sold part of the space in the Legion I business center on Bolshaya Ordynka, which previously belonged to Otkritie Bank; Pansionat Kamelia LLC, which owns and operates the five-star Swissotel Resort Sochi Kamelia hotel; and the Hyatt Regency Moscow Petrovsky Park hotel, located near the VTB Arena stadium where the football club Dynamo plays its home matches. VTB also plans to sell the Courtyard by Marriott Kazan Kremlin hotel in Kazan by the end of the year.

Pyanov said the group would continue to sell non-core assets in 2026, but they will be inferior to those in 2025 by value and name.