RIA NOVOSTI. The largest Russian lending institutions with assets exceeding Rub 500 bln should make a shift to the approaches of credit risk and capital management as part of the Basel II guidelines until the end of 2015, and till 2017 as part of a banking group, the Bank of Russia's draft instruction runs.
The rest of lending institutions will have to develop and phase in internal procedures to assess capital adequacy on an individual basis until December 31, 2016 and on the basis of a banking group till December 31, 2017.
This February the Central Bank of Russia worked out a statute how to calculate the credit risk ratio on the basis of banks' internal ratings under the Basel II requirements. These approaches provide more accurate assessment of credit risks based on internal ratings using complicated mathematical and statistical models, enabling banks to save capital and show much higher capital adequacy ratios.
A bank's board of directors and executive bodies should take part in the development and approval of a risk management system, and also to keep their implementation in check, the Bank of Russia noted.
