The changes will primarily affect prudential requirements on credit institutions. In particular, the regulator plans to abolish the ratio which limits aggregate requirements of a bank to its insiders (N10.1), update the procedure for calculating the N6 ratio for certain payment card transactions, and rule out that requirements may be duplicated following the enactment of the debt burden ratio. For banking groups, the regulator will abolish the restriction on their participation in the capital of other legal entities on a consolidated basis (the N23 ratio will continue to apply on a standalone basis).

For settlement non-bank credit institutions, there are plans to simplify the rules for business operations with legal entities and funds placement with non-resident central banks; this will boost the payment market, including in the CIS.

The amount of reporting which banks submit to the Bank of Russia and the scope of information they disclose will also be reduced. The number of banks which compile and submit statements under Form 0409122 ‘Calculation of liquidity coverage ratio (Basel III)’ will decrease. Changes in the procedure for calculating the basic return on deposits are another important innovation for banks. The abolition of the effective requirement that banks should publicly disclose information about the maximum interest rates on deposits is under consideration. The basic return on deposits will be calculated based on the data given in reports under Form 0409119 ‘Maximum interest rates on household deposits’,

In supervision, the methodology for the assessment of banks’ economic performance will be simplified by reducing the number of questions for certain indicators. For banks under resolution, there are plans to abolish the requirement for the compilation and submission to the Bank of Russia of capital recovery plans.

Draft amendments will be published for public discussion as and when prepared.

Financial markets megaregulator, Project Group №1