CBR, as of 1 January 2018 and introduces a new liquidity ratio

The Bank of Russia on 1 January 2018 and introduces the second of the two liquidity ratios proposed by Basel III, the ratio of structural liquidity ratio (the ratio of net stable funding), according to a press release regulator.

The procedure for the calculation of the new standard and its minimum allowable numeric value at the 100% level established by position of Bank of Russia.

Innovation aimed at improving the stability of the banking sector and implemented in the framework of implementation of international approaches to the assessment and management of liquidity risk in accordance with the standards of the Basel Committee on banking supervision, “Basel III: the net stable funding ratio (October 2014)”, said the Central Bank.

Calculation and observance of the standard net stable funding are made on a consolidated basis at the level of the banking group and parent credit institution which is systemically important credit institution (standard Н28), or on an individual basis in the absence of a systemically important credit institution of the banking group in accordance with regulatory approaches (standard Н29).

The observance of the standard net stable funding ensures that the Bank group (systemically important credit institutions) stable sources of obligations (liabilities) in the amount sufficient for funding of balance sheet assets and off-balance sheet commitments the Bank group (credit institution).

The Bank of Russia with the beginning of the year interacts with systemically important credit institutions in the process of the quarterly calculation of this ratio for banks to proactively and effectively prepare for the entry into force of the new requirements.

CBR, as of 1 January 2018 and introduces a new liquidity ratio 14.09.2017

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