For credit institutions developed new requirements for the calculation of operational risk

The draft regulation Bank of Russia establishes the requirements for calculating operational risk for inclusion in capital adequacy ratios in accordance with the new standardized approach provided by the standard “Basel III”.

The new standardised approach involves the application of the loss rate, which allows credit institutions to calculate the amount of capital required to cover operational risk based on the actual level of direct losses from the realization of risk events.

In addition, the draft regulation establishes requirements to the organization of supervision over the control of the calculation of operational risk for capital adequacy.

In the draft regulations included the rule that for banks, the asset size of 500 billion rubles and above, allowed an earlier start date of application of the new standardized approach.

The draft regulation is the second regulation issued by the Bank of Russia to implement the new standardized approach in accordance with the standard Basel III. The first normative act was established for the implementation of this approach (the draft regulation the Bank of Russia “On requirements to the system of operational risk management in credit institution and banking group”), establishes requirements for maintaining a database of operational risk events of the credit institution.

After the entry into force of this document will replace Bank of Russia Regulation from time loan-to 03.09.2018 No. 652-P “On the procedure for calculating operational risk”.

March 16, 2020