The Bank of Russia published its quarterly Banking Regulation Review for 2025 Q1, setting out prudential changes already made and a near-term pipeline of reforms. Key measures include an updated methodology for classifying systemically important credit institutions to support differentiated capital buffers, updated parameters for the risk-sensitive limit on immobilised assets, and temporary flexibility in loan quality classification for certain restructured corporate exposures. The revised systemically important credit institutions approach is designed to rank institutions by their impact on the economy and enable differentiated capital buffers, with the methodology scheduled to take effect in 2027 and buffer differentiation to be introduced stepwise from 2028. The regulator also published updated parameters of the risk-sensitive limit regulating banks’ investment in immobilised assets, expected to come into effect in October 2026 and be phased in according to a five-year schedule. In addition, an information letter permits banks not to downgrade the quality categories of corporate loans restructured in 2024 H2 and in 2025, but only for borrowers facing hardship who have the potential to restore solvency. By the end of 2025 Q2, the Bank of Russia plans to publish updated approaches to regulating the funding of concession projects, allowing banks to factor in a public partner’s repayment capacity under a direct concession agreement and potentially reduce risk weights to 20–60% where the public partner is rated at least ‘A’, with amendments expected to enter into force in 2026. It also plans to issue for discussion a draft regulation updating credit risk assessment for developers, including construction-stage differentiation, higher project success criteria, consideration of group financial standing, and the use of housing instalment plans, with possible entry into force in October 2026.
Central Bank of Russia 2025-05-29
Bank of Russia revises SICI methodology and updates risk-sensitive limit parameters with 2026–2028 phased implementation
The Bank of Russia's 2025 Q1 Banking Regulation Review details prudential changes and reforms, including a new methodology for classifying systemically important credit institutions to support differentiated capital buffers. Updates include revised risk-sensitive limits on immobilised assets and temporary flexibility in loan quality classification for certain restructured corporate exposures. Future plans involve updated regulations for concession project funding and credit risk assessment for developers, with implementation expected in 2026.