What awaits Russian banks in 2018?

Russia's Central Bank announced transition to proportional regulation of the banking system.

In other words, in 2018 banks will have to decide whether to increase their capital to 1 billion rubles and work under universal license, or to switch to a basic license (the minimum capital will be 300 million rubles).

Transition period will end on January 1, 2019.

It is noted that banks with basic license will receive significant easing from the regulator - they will have to go through simplified reporting procedure.

In addition, the Bank of Russia announced the introduction of several important innovations for systemically important banks (60% of the assets of Russia's banking sector).

The second of two liquidity coverage ratios, envisaged by Basel III, the structural liquidity ratio, will be introduced.

The regulator also reported that starting from January 1 of the current year, the International Financial Reporting Standard (IFRS) 9 will be mandatory for all banks.

It will replace IFRS 39.