First Deputy Chairman of the Central Bank Tulin expressed pride in the new approach to regulating banks
The Central Bank’s new approach to monitoring banks’ ties with the largest borrowers looks absolutely innovative and has no precedents in world practice. This was stated at the Financial Congress in St. Petersburg by the regulator’s first deputy chairman Dmitry Tulin, emphasizing that he is proud of the development transmits RBC.
He recalled that back in the summer of 2022, VTB CEO Andrei Kostin called for stopping the use of the regulatory standard being developed by the Basel Committee on Banking Supervision in Switzerland, the so-called “Basel”, and replacing it with something like “Voronezh”.
The banker then pointed out that, against the backdrop of unprecedented sanctions, following Swiss standards was becoming absurd. Thulin boasted that the transition in terms of regulating banks’ relationships with large borrowers had already taken place.
The main feature of “Voronezh” (we are talking about the requirements for the next five years, which the Central Bank announced at the end of June) the first deputy chairman of the Central Bank called its “multicoloredness”. If in “Basel” there is, figuratively speaking, painting in gray – then black will be added to the regulation (tightening), then white (easing) – now the approach is completely changing.
Tulin refused to admit that the requirements were becoming tougher. In his opinion, the regulator was canceling the relaxations in the standards that had become irrelevant because keeping them would not help anyone, and a terrible end is better than horror without end.
One of the Central Bank’s innovations may be the creation of the Banking Sector Support Fund (BSSF) to help credit institutions whose risk concentration standards exceed signal values. The fund’s volume will presumably be 500 billion rubles.
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