Registered

Ministry of Justice

Russian Federation

INSTRUCTIONS OF THE CENTRAL BANK OF THE RUSSIAN FEDERATION

About mandatory standards of banks

This Instruction is based on the Federal Law of July 10, 2002 No. 86-FZ “On the Central Bank of the Russian Federation (Bank of Russia)” (Collected Legislation of the Russian Federation, 2002, No. 28, Art. 2790; 2003, No. 2, Art. 157 ; No. 52, No. 2711, No. 3233; 25, art. 2648; 10, art. 1151; 2008, art. 4699; 4982; Art. 6231; Art. 29; Art. 5731; , art. 907; art. 5973; art. 2012, no. 53; art. 7607; , art. 1649; art. 27, art. 3477; art. , art. 6699; 2014, art. 2317; No. 45, Art. 7543; No. 4, Art. 3958; 41, art. 5639; No. 48, art. 6699; 2016, No. 1, art. 23, art. 46, art. 50; No. 26, art. 3891; No. 27, art. 4225, Art. 4273, art. 4295; 2017, No. 1, art. 46; No. 14, art. 1997; No. 18, art. 2661, art. 2669) (hereinafter referred to as the Federal Law "On the Central Bank of the Russian Federation (Bank of Russia)"), the Federal Law "On Banks and Banking Activities" (as amended by the Federal Law of February 3, 1996 No. 17-FZ) (Vedomosti of the Congress of People's Deputies of the RSFSR and the Supreme Council of the RSFSR, 1990, No. 357; Collection of legislation of the Russian Federation, 1996, No. 492; 1999, No. 3459; 2001, No. 2586; 2002, Art. 1093; 5037, No. 2711; 2005, Art. 45; 2006, No. 636; Art. 2061; Art. 5497; Art. 22; Art. 4011; , Art. 5425; 2008, Art. 895; Art. 23; ; No. 30, Art. 5731; Art. 4193; No. 6028; No. 7, No. 27; 3873, art. 3880; No. 29, art. 4291; No. 48, art. 6730; No. 49, art. 7069; No. 50, art. 7351; 2012, No. 27, art. 3588; No. 31, art. 4333; No. 50, art. 6954; No. 53, art. 7605, art. 7607; 2013, No. 11, Art. 1076; No. 19, art. 2317, Art. 2329; No. 26, art. 3207; No. 27, art. 3438, art. 3477; No. 30, art. 4084; No. 40, art. 5036; No. 49, art. 6336; No. 51, art. 6683, Art. 6699; 2014, No. 6, art. 563; No. 19, art. 2311; No. 26, art. 3379, art. 3395; No. 30, art. 4219; No. 40, art. 5317, art. 5320; No. 45, art. 6144, Art. 6154; No. 49, art. 6912; No. 52, art. 7543; 2015, No. 1, art. 37; No. 17, art. 2473; No. 27, art. 3947, art. 3950; No. 29, art. 4355, art. 4357, Art. 4385; No. 51, art. 7243; 2016, No. 1, Art. 23; No. 15, art. 2050; No. 26, art. 3860; No. 27, art. 4294, art. 4295; 2017, No. 14, art. 2000; No. 18, art. 2661, art. 2669; No. 25, art. 3596) (hereinafter referred to as the Federal Law “On Banks and Banking Activities”) and in accordance with the decision of the Board of Directors of the Bank of Russia (minutes of the meeting of the Board of Directors of the Bank of Russia dated May 29, 2017 No. 12) establishes numerical values ​​and methods for determining mandatory standards for banks, and also the features of the Bank of Russia’s supervision of their compliance.

Chapter 1. General provisions

1.1. This Instruction applies to the following mandatory standards for banks with a universal license (hereinafter referred to as banks):

capital adequacy;

liquidity;

the maximum amount of risk per borrower or group of related borrowers;

maximum size of large credit risks;

paragraph six is ​​no longer valid;

the total amount of risk for bank insiders;

using banks’ own funds (capital) to acquire shares (shares) of other legal entities;

the maximum amount of risk per person associated with the bank (group of persons associated with the bank).

1.2. Numerical values ​​and methods for determining other mandatory standards established by the Federal Law "On the Central Bank of the Russian Federation (Bank of Russia)", namely: the maximum amount of property (non-monetary) contributions to the authorized capital of a credit organization, as well as a list of types of property in non-monetary form that may be contributed as payment for the authorized capital; the minimum amount of reserves created for risks; the size of currency and interest risks; mandatory standards for banks with a basic license, banking groups and non-bank credit organizations are established by other regulations of the Bank of Russia.

1.3. Mandatory ratios of banks (hereinafter referred to as mandatory ratios) are calculated in accordance with the methods for their determination defined in this Instruction on the basis of the principles of reliability and objectivity, prudence, the predominance of economic substance over form and other internationally recognized principles that allow a qualitative assessment of transactions and reflect them in reporting. When calculating mandatory ratios, balances on balance sheet and off-balance sheet accounts (parts thereof) are taken into account, unless otherwise determined by the Bank of Russia.

When calculating mandatory standards, the following requirements must be met:

if balances on balance sheet accounts and (or) their parts that are not included in the list of balance sheet accounts and (or) codes given in this Instruction for calculating the mandatory ratio, according to their economic content, relate to risks regulated (limited) by the mandatory ratio, the bank includes these accounts (parts thereof) for the calculation of the mandatory standard;

if the balances on balance sheet accounts and (or) their parts, included in the list of balance sheet accounts and (or) codes given in this Instruction for calculating the mandatory ratio, and intended to cover (reduce) the risk regulated by it, do not cover (do not reduce) this risk, the bank does not include these accounts (parts thereof) in the calculation of the mandatory ratio.

When calculating mandatory ratios by banks performing the functions of a central counterparty, corresponding to the conditions of code 8846 of Appendix 1 to this Instruction, balances on balance sheet and off-balance sheet accounts (parts thereof) formed as a result of transactions in the implementation of clearing activities and the functions of a central counterparty are not taken into account.

The calculation of mandatory standards, indicators and codes provided for by this Instruction, as well as the calculation of the ruble funding ratio, includes claims (assets), liabilities (liabilities), income, expenses, other comprehensive income reflected on the corresponding balance sheet accounts, with the exception of account balances , intended for accounting:

adjustments that increase (decrease) the value of provided (placed) funds, acquired rights of claim upon initial recognition, as well as upon subsequent assessment of the value of these financial assets;

adjustments that increase (decrease) the cost of funds raised upon initial recognition, as well as upon subsequent assessment of the value of these financial liabilities;

adjustments that increase (decrease) the value of debt securities;

revaluation that increases (decreases) the cost of raised funds, issued securities assessed at fair value through profit or loss;

revaluation of equity securities reflected upon initial recognition of securities;

revaluation that increases (decreases) the value of assets assessed at fair value through profit or loss or through other comprehensive income, for which a reserve for possible losses or a reserve for possible losses on loans, on loans and similar debts is formed;

valuation allowance for expected credit losses (including for securities assessed at fair value through other comprehensive income), reflected on balance sheet accounts No. 10630 and 10631;

adjustments to the formed reserve for possible losses to the amount of the estimated reserve for expected credit losses;

the amount of transaction costs for financial liabilities and financial assets reflected in balance sheet account No. 47440;

the amounts of interest accrued but not actually received by the credit institution on loans and other assets classified in quality categories IV and V for the purpose of forming reserves for possible losses or reserves for possible losses on loans, on loan and similar debt.

1.4. This Instruction establishes the numerical values ​​and methodology for calculating the following allowances to the bank’s capital adequacy standards (hereinafter referred to as the allowances):

maintaining capital adequacy;

anticyclical;

for systemic significance.

1.5. When calculating mandatory ratios, long-term credit ratings assigned by foreign credit rating agencies according to the international rating scale S&P Global Ratings or Fitch Ratings or Moody's Investors Service Investors Service) (hereinafter referred to as foreign credit rating agencies) are used only in relation to foreign rating objects (with the exception of paragraph 2.6 of this Instruction, Appendix 7 to this Instruction, in which long-term credit ratings assigned by foreign credit rating agencies are used subject to the provisions documents of the Basel Committee on Banking Supervision).

In relation to Russian rating objects, credit ratings assigned on the national rating scale for the Russian Federation by credit rating agencies, information about which is entered by the Bank of Russia in the register of credit rating agencies (hereinafter referred to as Russian credit rating agencies), are used, not lower than the level established by the Board of Directors of the Bank of Russia . Information on the minimum levels of credit ratings assigned by Russian credit rating agencies is posted on the official website of the Bank of Russia on the Internet information and telecommunications network (hereinafter referred to as the official website of the Bank of Russia) and published in the Bulletin of the Bank of Russia.

Long-term credit ratings assigned by foreign credit rating agencies are used when applying this Instruction, taking into account the specifics established by the Bank of Russia Directive No. 3453-U dated November 25, 2014 “On the specifics of using credit ratings for the purposes of applying Bank of Russia regulations”, registered by the Ministry of Justice Russian Federation December 16, 2014 No. 35194.

Chapter 2. Bank capital adequacy standards: the bank's basic capital adequacy standard, the bank's fixed capital adequacy standard, the bank's own funds (capital) sufficiency standard and the bank's own funds (capital) adequacy standard taking into account the weighting of assets by risk level of 100 percent

2.1. The bank's capital adequacy standards, with the exception of the bank's own funds (capital) adequacy ratio taking into account the weighting of assets by the risk level of 100 percent (hereinafter referred to as the financial leverage ratio (H1.4), are calculated as the ratio of the amount of the bank's basic capital, the amount of the bank's fixed capital and the amount own funds (capital) of the bank, determined according to the methodology provided for by the Regulation of the Bank of Russia dated December 28, 2012 No. 395-P "On the methodology for determining the amount of own funds (capital) of credit institutions (Basel III)", registered by the Ministry of Justice of the Russian Federation 22 February 2013 No. 27259, November 29, 2013 No. 30499, October 2, 2014 No. 34227, December 11, 2014 No. 35134, December 17, 2014 No. 35225, March 24, 2015 No. 36548, June 5, 2015 No. 37549, October 5 2015 No. 39152, December 8, 2015 No. 40018, December 17, 2015 No. 40151, August 26, 2016 No. 43442 (hereinafter referred to as Bank of Russia Regulation No. 395-P), to the amount:

credit risk for assets reflected on balance sheet accounts (assets minus formed reserves for possible losses and reserves for possible losses on loans, loan and similar debt, weighted by risk level), taking into account the application of premiums to risk coefficients established Directive of the Bank of Russia dated August 31, 2018 No. 4892-U “On the types of assets, characteristics of the types of assets for which add-ons to risk coefficients are established, and the methodology for applying add-ons to these types of assets for the purpose of calculating capital adequacy ratios by credit institutions”, registered by the Ministry of Justice Russian Federation September 25, 2018 No. 52249 (hereinafter referred to as Bank of Russia Directive No. 4892-U);

credit risk under credit related commitments;

credit risk on derivative financial instruments;

the risk of changes in the value of the credit claim as a result of deterioration in the credit quality of the counterparty;

operational risk;

market risk.

2.1.1. Bank capital adequacy standards - the bank's basic capital adequacy standard (hereinafter - the N1.1 standard), the bank's fixed capital adequacy standard (hereinafter - the N1.2 standard), the bank's own funds (capital) adequacy standard (hereinafter - the N1.0 standard) - are calculated using the formula.

The methodology for determining mandatory standards for banks has been updated, taking into account the use of credit ratings on the national rating scale. The Bank of Russia Instruction, establishing numerical values ​​and methods for determining mandatory bank ratios, will replace the previously valid similar instruction approved by the Bank of Russia dated December 3, 2012 N 139-I.

When calculating mandatory standards, it is provided for the use of long-term credit ratings in relation to foreign rating objects on an international rating scale (with some exceptions and taking into account established features), and in relation to Russian rating objects - on a national scale, assigned by Russian credit rating agencies. It has been established that certain provisions apply until December 31, 2018 inclusive.

Issued document: Standard certificate

Topic 1. New Bank of Russia Instruction No. 180-I dated June 28, 2017: changes in the calculation of standards (4 hours)

• Comparison of Bank of Russia Instruction No. 139-I and Bank of Russia Instruction dated June 28, 2017. No. 180-I “On mandatory standards for banks”
• Changes in the calculation of the funding ratio.
• New approaches to the use of ratings.
• New codes for calculating capital adequacy standards.
• Review and prospects for implementing the requirements of Bank of Russia Directive No. 4203-U dated November 17, 2016 “On signs of a possible connection of a person(s) with a credit institution.”
• Comments to Bank of Russia Directive No. 4205-U dated November 17, 2016 “On the procedure for the Bank of Russia Banking Supervision Committee to make a decision to recognize a person as a person associated with a credit organization (part of a group of persons associated with a credit organization), on the basis of a reasoned judgment, sending requirements credit organization and consideration of requests from the credit organization.”
• Review of the explanations of the Bank of Russia on the calculation of the N25 standard (explanations of the Bank of Russia DBN are included in the handout).

Cost of the first topic - 8900 rub.

Form of study— in person / webinar

Topic 2. Comments on Bank of Russia Instruction No. 180-I dated June 28, 2017 “On mandatory standards for banks” (2 hours)

Review of innovations in Bank of Russia Instruction No. 180-I dated June 28, 2017 “On mandatory standards for banks”:

• expanding the possibility of applying a reduced risk coefficient of 75% for requirements for small businesses;
• unification of approaches to the use of increased risk coefficients (>100%);
• features of the application of ratings;
• features of the application of a preferential risk ratio of 75% for loans to companies registered in the Crimea and Sevastopol;
• clarification of the procedure for calculating the N12 standard;
• clarification of the risk assessment for property transferred as security for the fulfillment of obligations for third parties;
• other clarifications.

Changes to Bank of Russia Instruction No. 180-I, planned to enter into force in the second half of 2017 – early 2018:

the general concept of the new methodology being developed for calculating credit risk on investments in funds in order to calculate bank capital adequacy standards.

Answers to questions on the topic of the seminar.

The cost of the second topic is 7800 rub.

Form of training - in person

Event cost: 13500 rub.

Form of study: In person

Issued instruction No. 4635-U dated December 6, 2017 on amending instructions dated June 28, 2017 No. 180-I “On mandatory standards for banks.” The document was registered by the Ministry of Justice on January 10, 2018 and will come into force ten days after its official publication.

As follows from the amendments, the Central Bank's instructions on mandatory standards will now apply to banks with a universal license, and mandatory standards for banks with a basic license are established by other regulations.

The title of Chapter 2 of the instructions has been expanded and now reads as follows (the addition is in bold): “The bank’s capital adequacy standards: the bank’s basic capital adequacy standard, the bank’s fixed capital adequacy standard, the bank’s own funds (capital) sufficiency standard and the bank’s own funds (capital) sufficiency standard ) of the bank, taking into account the weighting of assets by risk level of 100%.”

Accordingly, a new mandatory standard is being introduced - the financial leverage standard N1.4. It is calculated as the ratio of the bank's fixed capital to the amount of balance sheet assets, weighted by the level of credit risk of 100%; to the amount of credit risk under contingent credit obligations; to the amount of credit risk on derivatives transactions; to the amount of credit risk for transactions of purchase and sale of securities without derecognition with the obligation to resell them (purchase) and for securities borrowing transactions (securities lending).

The minimum permissible numerical value of the N1.4 standard is set at 3%.

Previously it was planned that the new mandatory standard would be in force from January 1, 2018. In the explanatory note of the Central Bank to the draft amendments to the instructions “On mandatory standards of banks” published in September 2017, it was stated that banks currently disclose information about the indicator of financial leverage within the framework of reports on forms 0409808 “Report on the level of capital adequacy to cover risks, the amount reserves for possible losses on loans and other assets" and 0409813 "Information on mandatory standards, financial leverage indicator and short-term liquidity ratio." Now this standard “comes into force for prudential purposes, that is, the financial leverage indicator becomes a mandatory standard,” the Central Bank explained. “The implementation of this standard is the final part of the implementation of the established requirements for bank capital adequacy within the framework of Basel III,” the regulator noted in the materials.

From the amendments to the instructions “On mandatory standards of banks” it follows that the capital adequacy buffers established by the Central Bank (the capital adequacy buffer, the countercyclical buffer and the systemic importance buffer) do not apply to the new financial leverage ratio N1.4.

One of the amendments to Instruction No. 180-I provides for clarification of the calculation of the ratio of the principal amount of mortgage loans to the fair value of the collateral. According to the current version of the instructions, if the initial payment from the borrower’s own funds is more than 30% of the fair value of the collateral, the amount of the principal debt on the loan is reduced by the amount of the insured amount under the borrower’s liability insurance agreement or financial risk insurance of the creditor bank when concluding these agreements with an insurance organization with an authorized capital of at least 3 billion rubles and a direct or indirect share of the state in the capital in the amount of at least 50% plus one share or part of the insured amount in the amount of the risk transferred to reinsurance by a reinsurance organization that meets the above requirements.

In the new version of the instructions, this provision will apply to loans for which the borrower’s down payment is more than 20%, and the criteria for insurers will be related not to the size and structure of their authorized capital, but to their credit ratings from one of the accredited Russian rating agencies: RAEX (“Expert RA”) or ACRA.

In addition, the new version of the instructions corrects the calculation principle. Thus, if before the amendments it was envisaged that the bank would calculate mandatory ratios and surcharges in percentages with one decimal place (with rounding according to mathematical rules), now the values ​​of mandatory ratios will continue to be calculated with one decimal place, and the values ​​of indicators taking into account surcharges - with three decimal places, follows from the new instructions of the Central Bank.

The document was registered by the Ministry of Justice on January 10, 2018 and will come into force ten days after its official publication.

As follows from the amendments, the Central Bank's instructions on mandatory standards will now apply to banks with a universal license, and mandatory standards for banks with a basic license are established by other regulations.

The title of Chapter 2 of the instructions has been expanded and now reads as follows (the addition is in bold): “The bank’s capital adequacy standards: the bank’s basic capital adequacy standard, the bank’s fixed capital adequacy standard, the bank’s own funds (capital) sufficiency standard and the bank’s own funds (capital) sufficiency standard ) of the bank, taking into account the weighting of assets by risk level of 100%."

Accordingly, a new mandatory standard is being introduced - the financial leverage standard N1.4. It is calculated as the ratio of the bank's fixed capital to the amount of balance sheet assets, weighted by the level of credit risk of 100%; to the amount of credit risk under contingent credit obligations; to the amount of credit risk on derivatives transactions; to the amount of credit risk for transactions of purchase and sale of securities without derecognition with the obligation to resell them (purchase) and for securities borrowing transactions (securities lending).

The minimum permissible numerical value of the N1.4 standard is set at 3%.

Previously it was planned that the new mandatory standard would be in force from January 1, 2018. In the explanatory note of the Central Bank to the draft amendments to the instructions “On mandatory standards of banks” published in September 2017, it was stated that banks currently disclose information about the indicator of financial leverage within the framework of reports on forms 0409808 “Report on the level of capital adequacy to cover risks, the amount reserves for possible losses on loans and other assets" and 0409813 "Information on mandatory standards, financial leverage indicator and short-term liquidity ratio." Now this standard “comes into force for prudential purposes, that is, the financial leverage indicator becomes a mandatory standard,” the Central Bank explained. “The implementation of this standard is the final part of the implementation of the established requirements for bank capital adequacy within the framework of Basel III,” the regulator noted in the materials.

Starting next year, the Central Bank plans to introduce a new mandatory financial leverage standard N1.4

The Bank of Russia has developed amendments to its instruction dated June 28, 2017 No. 180-I “On mandatory standards for banks.” The draft corresponding instruction, which is published on the regulator’s website, provides for the implementation of the norms of the Basel Committee on Banking Supervision standard, which establishes the procedure for calculating the bank’s capital adequacy ratio taking into account the weighting of assets by the risk level of 100% (financial leverage ratio N1.4), indicated in the explanatory note to document.

From the amendments to the instructions “On mandatory standards of banks” it follows that the capital adequacy buffers established by the Central Bank (the capital adequacy buffer, the countercyclical buffer and the systemic importance buffer) do not apply to the new financial leverage ratio N1.4.

One of the amendments to instruction No. 180-I provides for clarification of the calculation of the ratio of the amount of the principal debt to the fair value of the collateral. According to the current version of the instructions, if the initial payment from the borrower’s own funds is more than 30% of the fair value of the collateral, the amount of the principal debt on the loan is reduced by the amount of the insured amount under the borrower’s liability insurance agreement or financial risk insurance of the creditor bank when concluding these agreements with an insurance organization with an authorized capital of at least 3 billion rubles and a direct or indirect share of the state in the capital in the amount of at least 50% plus one share or part of the insured amount in the amount of the risk transferred to reinsurance by a reinsurance organization that meets the above requirements.

In the new version of the instructions, this provision will apply to loans for which the borrower’s down payment is more than 20%, and the criteria for insurers will be related not to the size and structure of their authorized capital, but to their credit ratings from one of the accredited Russian rating agencies: RAEX (“Expert RA”) or ACRA.

In addition, the new version of the instructions corrects the calculation principle. Thus, if before the amendments it was envisaged that the bank would calculate mandatory ratios and surcharges in percentages with one decimal place (with rounding according to mathematical rules), now the values ​​of mandatory ratios will continue to be calculated with one decimal place, and the values ​​of indicators taking into account surcharges - with three decimal places, follows from the new instructions of the Central Bank.

ATTENTION!!! NOVELTS Instructions of the Bank of Russia No. 180-I On mandatory standards for banks.

Please note that the seminar is conducted by the developer of Bank of Russia Instruction No. 180-I.

Program:

1. Innovations of Bank of Russia Instruction No. 180-I “On mandatory standards of banks”:

   ● expanding the possibility of applying a reduced risk coefficient of 75% for requirements for small businesses;

   ● unification of approaches to the use of increased risk coefficients (>100%);

   ● clarification of the procedure for calculating the ruble funding ratio;

   ● clarification of the procedure for calculating the N12 standard;

   ● clarification of the risk assessment for property transferred as security for the fulfillment of obligations for third parties;

   ● the procedure for assessing risks for transactions with clearing certificates of participation;

   ● introduction for the period from the date of entry into force of the instruction and until December 31, 2018, a reduced risk ratio of 75% in relation to credit claims and requirements to receive accrued (accumulated) interest to corporate borrowers registered in the territory of the Republic of Crimea or the federal city of Sevastopol;

   ● the procedure for taking into account the claims of clearing participants to NCC for the purposes of calculating liquidity ratios (codes 8895 and 8848).

2. Innovations Instructions “On amendments to Bank of Russia Instruction No. 180-I dated June 28, 2017 “On mandatory standards for banks” regarding the implementation of the norms of the Basel Committee on Banking Supervision Standard “Capital requirements for equity investment in funds” (Capital adequacy requirements for banks' equity investments in funds) (December 2013), establishing a new approach to assessing the credit risk of a bank's investments in funds, taking into account information provided by the fund/management company on the structure of the final objects of investment in the fund and the fund's investment declaration, in order to calculate adequacy standards bank capital. The instruction is being registered with the Ministry of Justice of the Russian Federation.
3. Comments and clarifications:

   ● Letter of the Bank of Russia dated September 22, 2017 N 41-3-2-1/1139 “On the calculation by credit institutions, including on a consolidated basis, of allowances to the equity (capital) adequacy standards and the reflection of their values ​​in reporting.”