Moscow. January 20. Bankers asked the Central Bank of the Russian Federation to return the preferential rate for calculation of standards and to consider additional emergency measures to reduce the effects of a sharp devaluation on the stability of the Russian banking system. The corresponding letter addressed to the head of the Central Bank Elvira Nabiullina has sent banking Association “Russia”.
The Central Bank from 1 January 2016 translated to standard banks regulation, including made market rate for calculation of mandatory standards. The preferential rate for calculation of standards together with a package of other relief measures the Central Bank introduced at the end of 2014 on the background of instability in financial markets and a sharp depreciation of the ruble, the banks were able to adapt to changing conditions.
“As for indulgences on banking regulation, we believe that the banking system can cope without them, and since January 1 we’re going to go on a standard regulation, including the rate to calculate the standards will be market”, – said Nabiullina, in a December interview.
Initially, regulatory relief was in force before 1 July, some of them the Central Bank has not renewed, as part of the extended first until October 1, 2015, and then to 1 January 2016, including the preferential exchange rate when calculating the ratios. Until the end of 2015 the banks used for these purposes the U.S. dollar at the rate of 55 rubles, Euro – 64 rubles, the rate of the British pound – 86 rubles, the Euro – 58 rubles, rate 100 Japanese yens – 46 rubles. For comparison: the Euro on the Moscow stock exchange exceeded 88 ruble, the dollar at this point updated the historical maximum, having risen above 81 rubles.
The Association requests an extension of the period of use discount rate to calculate the standards for assets placed prior to 2015, prior to the expiration of these assets. In addition, bankers are requested to maintain the possibility of restructuring the loans without compromising their quality, but also expeditiously to consider adopting additional, urgent measures to reduce the impact of a sharp weakening of the ruble on the stability of the banking system.
According to the Association, the abolition of indulgences lead to the violation of mandatory norms of capital adequacy and/or the N6 ratio (maximum risk per borrower or group of related borrowers), or they reach critical values at more than 25% of banks surveyed.
According to the President of the Association “Russia”, Chairman of the state Duma Committee on economic policy Anatoly Aksakov, more than half of the interviewed banks are interested in extending the possibilities of application of preferential exchange rates until the expiration of foreign currency loans or forward contracts issued before 2015. Otherwise a considerable number of banks already in January 2016 will face the inability to meet standards that limit the concentration of credit risk, and some with the violation of capital adequacy that will be a limiting factor in the growth of lending to the economy.
Association “Russia” expresses its readiness, in collaboration with the Department of regulation of the CBR to conduct surveys of credit institutions to provide the Bank all necessary information and to prepare relevant proposals.
Raiffeisenbank analysts admit that at the level of 80 rubles/$1 in capital requirements can occur in some players, and did not exclude that the Central Bank may lower rates to return in case of strong depreciation of the national currency. According to their estimates, in order that the adequacy ratio core capital according to “Basel III” (N1.1) went below 5%, sufficient weakening of the ruble to 110 rubles/$1.