The Central Bank of Russia’s Banking Regulation Review for the third quarter of 2026 outlines plans to introduce quantitative borrower debt burden indicators into credit analysis for loan loss provisioning. Discussions with market participants are planned by the end of 2026, with changes expected to take effect on July 1, 2027. The measures would improve risk assessment for highly leveraged companies with limited capacity to service debt. Earlier provisioning proposals focused on strengthening the reliability of information used to assess borrowers’ financial position. The bank will also publish consultation outcomes on its supervisory stress testing (SST) concept, clarifying methodological aspects and approaches to the qualitative assessment of results. Work to amend the legislative framework and draft regulations incorporating SST into banking regulation is planned to begin in 2027. Completed work includes a regulatory impact assessment of draft ratios limiting banks’ risks from digital currency transactions and a decision reducing the capital burden on lending to projects protecting critical infrastructure. A draft regulation governing the calculation of a limit on banks’ investments in immobilised assets and ecosystems, calibrated to risk, has been prepared for registration.
Central Bank of Russia plans quantitative debt burden indicators for loan loss provisioning from July 2027
The Central Bank of Russia plans discussions by the end of 2026 on quantitative debt burden indicators for loan loss provisioning, with implementation expected on July 1, 2027. The measures would improve assessments of highly leveraged corporate borrowers with limited debt servicing capacity. The bank also plans to publish supervisory stress testing consultation outcomes and begin legislative and regulatory work in 2027 to incorporate it into banking regulation.