The Central Bank of Russia has revised the parameters and operation of irrevocable credit lines (ICLs) for systemically important credit institutions as they transition from the Basel III liquidity coverage ratio (LCR) to a national LCR framework. From 30 October 2025, the fee for the right to use an ICL will be 1% per annum of the ICL limit included in the national LCR calculation, and the one-year term for ICLs has been cancelled. The ICL mechanism and its role in meeting the ratio have also been changed so that it covers only a limited portion of LCR volatility, capped at 20 percentage points. Fees will be calculated based on the number of days the ICL is actually used for LCR compliance and the amount drawn, with the stated aim of steering banks toward meeting the ratio through market instruments.
Central Bank of Russia 2025-10-06
Central Bank of Russia sets a 1% annual fee and narrows use of irrevocable credit lines for national LCR compliance
The Central Bank of Russia updated parameters for irrevocable credit lines (ICLs) for systemically important credit institutions transitioning to a national liquidity coverage ratio (LCR) framework. Effective 30 October 2025, the ICL usage fee will be 1% per annum of the ICL limit, and the one-year term for ICLs has been removed. The ICL mechanism now covers only up to 20 percentage points of LCR volatility, with fees based on actual usage to encourage market-based compliance.