Central Bank could limit bank lending to related parties to 20% of equity

Home > Newsroom > Top Stories > Central Bank could limit bank lending to related parties to 20% of equity - Nabiullina

Central Bank could limit bank lending to related parties to 20% of equity - Nabiullina

ST. PETERSBURG. July 1 (Interfax) - The Central Bank of Russia plans to introduce a new requirement that limits lending by banks to related parties to 20% of equity, Central Bank head Elvira Nabiullina said at the International banking Congress in St. Petersburg.

Nabiullina said it was important to limit risk emanating from the widespread practice of lending to a bank's owners or related parties. "We propose to adopt a regulation that will determine, aide partly by reasoned judgment, the relations between a borrower and a lending institution, its shareholders and themselves," she said.