The Bank of Russia has published updated parameters for a planned risk-sensitive limit (RSL) intended to curb banks’ investments in immobilised non-core assets and require additional capital where such exposures exceed the limit. Immobilised assets are described as investments with no repayment requirements, limited liquidity and equity-type risk, including equity instruments, tangible assets, excess fixed assets and ecosystems. Under the RSL framework, the level of bank capital required will increase for immobilised assets above the RSL, shifting the risk of excess investment from depositors and creditors to shareholders. The measure is planned to apply to banks with a universal licence and to enter into force from 2026. Compared with the calculation method first published in 2021, the updated approach expands and revises the list of assets in scope, reduces the maximum immobilisation ratio and relaxes the schedule for reaching the target RSL level. Feedback on the consultation paper is open through 27 June 2025.
Central Bank of Russia 2025-05-27
Central Bank of Russia consults on revised risk-sensitive limit for banks’ immobilised assets ahead of 2026 rollout
The Central Bank of Russia has updated parameters for a risk-sensitive limit (RSL) to curb banks' investments in immobilised non-core assets, requiring additional capital for exposures exceeding the limit. The revised approach expands the asset list, reduces the maximum immobilisation ratio, and relaxes the schedule for reaching the target RSL level. The measure applies to banks with a universal licence and is set to take effect in 2026.