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2024: The Central Bank announced the creation of the Banking Sector Support Fund for 500 billion rubles
At the end of June 2024, the Bank of Russia announced the creation of the Banking Sector Support Fund (FPBS) with a target capital of 500 billion rubles. The regulator told details about this project in a report on the regulation of the concentration of credit risks.
The main goal of the FPBS will be to control and cover excessive credit risks in the banking sector, which should contribute to their gradual reduction. The fund will be filled by deductions from banks falling into the new "orange zone" according to concentration standards, as well as fees for guarantees provided.
The Central Bank plans to introduce new N6.1 and N30.1 standards reflecting the "orange zone" - exceeding the norm in the range from 25% to 40% of capital. When entering this zone banks , they will be required to make increased contributions to the insurance fund at a rate of 1.5-2.5% per annum of the excess risk.
The FPBS will issue guarantees to banks for their large borrowers with a high rating, according to which concentration standards have reached the upper border of the "orange zone." The debt secured by the guarantee of the fund will not be included in the calculation of concentration standards.
The regulator expects that with an annual admission of 30-50 billion rubles to the FPBS, by the end of 2030 it will accumulate 150-250 billion rubles of equity. Upon reaching the target size of 500 billion rubles, the fund will be able to cover up to 10 expositions for large borrowers in the amount of about 500 billion rubles each.
The Central Bank is also considering the possibility of using the fund's funds for the early recapitalization of credit institutions in stressful situations. This can reduce the burden on the Mandatory Deposit Insurance Fund and market participants.
To ensure the financial stability of the FPBS, it is planned to introduce requirements for the diversification of its assets, including industry and individual risk limits on guarantees. The fund will guarantee up to 50% of the bank's exposure to the borrower.[1]
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