The Central Bank of Russia has published a concept paper for discussion setting out a revised approach to classifying credit institutions as systemically important, with capital requirements intended to better reflect each bank’s footprint and impact on the financial system and economy. The proposal would move from a single systemic capital add-on to a tiered structure where systemically important credit institutions (SICIs) are grouped by the level of add-on to their capital adequacy ratios (CARs). The method would consider factors including the number of clients, ecosystem maturity and a bank’s importance in the payment services market. Under the current approach, SICIs are not divided into groups and the systemic add-on equals 1% for all of them. The Central Bank of Russia plans to prepare the supporting regulatory framework and amend banks’ reporting in 2025–2026, enabling the SICI list to be revised under the new method as early as 2027. From 2028, SICIs would follow a schedule to gradually raise capital add-ons to the established level, and feedback on the consultation paper is open through 27 June 2025.
Central Bank of Russia 2025-05-22
Central Bank of Russia consults on a new method to identify systemically important banks and introduce tiered capital add-ons
The Central Bank of Russia has proposed a revised classification of systemically important credit institutions (SICIs), introducing tiered capital adequacy ratios (CARs) based on factors like client numbers and payment services market importance. This replaces the current uniform 1% systemic capital add-on with varying levels. Implementation is planned for 2025–2026, with SICIs adjusting capital add-ons by 2028.