Russian Central Bank to Soften Capital Regulation On Some Banks

The Russian central bank is set next year to slightly soften capital buffer requirements on banks that assess their own credit risk, deputy governor Vasily Pozdyshev told Reuters, in a bid to encourage more lenders to take up the practice, Reuters reported. The move comes as the Russian central bank presses for banks to conduct in-house risk assessments, saying it allows for better management of banks’ capital cushions and could cut the cost of borrowing. The softened regulations at this stage would apply to Sberbank and the Russian unit of Raiffeisenbank , the only two lenders the Russian central bank has authorised to calculate their own credit risk using what is called an internal ratings-based (IRB) approach, which is used under global banking regulations. Read more