New risk ratios for Russia's biggest banks won't be introduced before 2022 - Nabiullina
MOSCOW. May 28 (Interfax) - New risk ratios for systemically important banks in Russia will not be introduced before 2022, Central Bank Governor Elvira Nabiullina said during the Third Congress of the Association of Russian Banks.
"Risk concentration for systemically important banks has always been a sticking point for our banking sector. Objectively this is because our biggest corporate borrowers, enterprises, are bigger than our biggest banks. In a situation where syndicated lending is not developed then such a concentration of risks related to individual borrowers could make banks vulnerable and put their resilience in danger," Nabiullina said.
"We are now discussing a new prudential ratio that will differ from the existing N6 and N21 risk ratios in that the assets of a banking group are included in an N30 ratio without weighting by the level of risk and will be correlated with their core and not common equity. This, in our view, will make it possible to assess these risks more accurately and take into account the channels by which risk is transferred and the spread of risks across a group which banking groups form," she said.
"We have drafted a regulatory act and we also plan to discuss it with the banking community. In any event the ratio will not be introduced before 2022," she said.
