MIL OSI Translation. Region: Russian Federation –
Source: Central Bank of Russia – Central Bank of Russia –
Bank of Russia makes changesin the regulation of open currency positions (OCP) of credit institutions.
A new limit is being introduced on balance sheet open positions (in the amount of 50% of capital) and criteria for fictitious and unreliable hedging of currency risk. These measures are designed to better balance the currency structure of assets and liabilities of credit institutions and prevent understatement of currency risk.
The procedure for calculating OCP has been revised, which is now closer to intra-bank economic approaches and takes into account the actual impact of currency risk on the financial result according to international standards (IFRS). This will make it easier for credit institutions to manage their open margins to comply with limits.
Additionally, the Bank of Russia has adjusted the rules according to which non-compliance with OCP limits is considered a violation. The new approach will give credit institutions more time to cover positions that were opened in emergency situations due to external reasons.
Banks will be required to apply new approaches from July 1, 2024 (standards on the quality of hedging transactions – from October 1, 2024).
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Note; This information is raw content directly from the source of the information. This is exactly what the source states and does not reflect the position of MIL-OSI or its clients.
Please note; This information is raw content directly from the information source. It is accurate to what the source is stating and does not reflect the position of MIL-OSI or its clients.
EDITOR’S NOTE: This article is a translation. Apologies should the grammar and or sentence structure not be perfect.
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