The Central Bank of Russia has sent to the Russian Ministry of Justice for registration a methodology for calculating a national liquidity coverage ratio (NLCR) for systemically important credit institutions (SICIs), replacing the Basel liquidity coverage ratio (LCR) in force since 2016. The NLCR is scheduled to enter into force on 1 October 2025, with a minimum requirement of 80% in 2025, rising to 100% from 1 January 2026. The new ratio is calibrated on domestic bank data and sets the composition of high-quality liquid assets (HQLAs) based on assets traded in the domestic market. Key methodological changes include a phased-in concentration limit for securities in HQLAs, under which assets qualify only if the bank holds no more than 30% of an issue, to be implemented gradually through end-2027, and a prohibition on increasing liquidity ratios using dormant nostro accounts. Outflow rates are slightly reduced for Federal Treasury funds and household funds, with the Federal Treasury outflow rate set to total 45% after the transition period ends on 1 January 2027. Under the NLCR methodology, banks are expected to have an additional buffer of 25 percentage points or more versus the current Basel LCR calculation. Compliance is designed to remain flexible through continued use of irrevocable credit lines (ICLs) in modified form, limited to covering small ratio volatility of no more than 20 percentage points, with parameters to be set out in future Central Bank of Russia orders. A new NLCR reporting form is planned to take effect in January 2026 via amendments to Bank of Russia Ordinance No. 6406-U, while banks will submit NLCR data using the existing Basel LCR reporting forms in the interim.
Central Bank of Russia 2025-08-12
Central Bank of Russia submits national liquidity coverage ratio methodology to replace Basel LCR for systemically important banks from October 2025
The Central Bank of Russia will replace the Basel LCR with a national liquidity coverage ratio (NLCR) for systemically important credit institutions from 1 October 2025. The NLCR will start at 80% in 2025, increasing to 100% by 2026. It uses domestic bank data, includes a phased concentration limit for high-quality liquid assets, prohibits using dormant nostro accounts to boost liquidity ratios, and adjusts outflow rates for Federal Treasury and household funds. Compliance remains flexible with modified irrevocable credit lines, and a new NLCR reporting form will be introduced in January 2026.