Front Matter

Front Matter Page

IMF Country Report No. 16/303

RUSSIAN FEDERATION: FINANCIAL SECTOR ASSESSMENT PROGRAM

DETAILED ASSESSMENT OF OBSERVANCE BASEL CORE PRINCIPLES FOR EFFECTIVE BANKING SUPERVISION (BCP)

September 2016

This Detailed Assessment of Observance on the Basel Core Principles for Effective Banking Supervision on the Russian Federation was prepared by a staff team of the International Monetary Fund. It is based on the information available at the time it was completed on September 2016.

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Front Matter Page

RUSSIAN FEDERATION: DETAILED ASSESSMENT OF OBSERVANCE

BASEL CORE PRINCIPLES FOR EFFECTIVE BANKING SUPERVISION (BCP)

September 2016

Prepared By

Monetary and Capital Markets Department, IMF, and Finance and Markets Global Practice, World Bank

This report was prepared by Katharine Seal, IMF, and Pierre-Laurent Chatain, World Bank, in the context of a joint IMF-World Bank Financial Sector Assessment Program (FSAP) mission in the Russian Federation during February, 2016. The FSAP was led by Karl Habermeier, IMF and Aurora Ferrari, World Bank, and overseen by the Monetary and Capital Markets Department, IMF, and the Finance and Markets Global Practice, World Bank. Further information on the FSAP can be found at http://0-www-imf-org.library.svsu.edu/external/np/fsap/fssa.aspx, and www.worldbank.org/fsap.

Contents

  • Glossary

  • INTRODUCTION

  • METHODOLOGY

  • INSTITUTIONAL AND MARKET STRUCTURE—OVERVIEW

  • PRECONDITIONS FOR EFFECTIVE BANKING SUPERVISION

  • MAIN FINDINGS

  • DETAILED ASSESSMENT

  • A. Supervisory Powers, Responsibilities and Functions

  • B. Prudential Regulations and Requirements

  • SUMMARY COMPLIANCE WITH THE BASEL CORE PRINCIPLES

  • RECOMMENDED ACTIONS AND AUTHORITIES’ COMMENTS

  • A. Recommended Actions

  • B. Authorities’ Response to the Assessment

Glossary

AML/CTF

Anti-Money Laundering/Countering Terrorist Financing

ASFB

Analysis of Financial Condition of Banks

AR

Authorized Representative

BBAL

Federal Law “On Banks and Banking Activity”

BCBS

Basel Committee for Banking Supervision

BCP

Basel Core Principles

BHC

Bank Holding Company

BoD

Board of Directors

BSC

Banking Supervision Committee

BSR

Banking Supervision Report

CBL

Federal Law “On the Central Bank of the Russian Federation (the Bank of Russia/CBR)”

CBR

Central Bank of the Russian Federation/ Bank of Russia

CBRC

Chinese Banking Regulatory Commission

CG

Corporate Governance

CPs

Core Principles

C&RA Plan

Continuity and Recovery of Activities Plan

CRO

Chief Risk Officer

D-SIBs

for Domestic Systemically Important Banks

EC

Essential Criteria (of the Core Principles)

FATF

Financial Action Task Force

FIU

Financial Intelligence Unit

FSAP

Financial Sector Assessment Program

FSB

Financial Stability Board

FX

Foreign Exchange

HQLA

High Quality Liquid Assets

IAS

International Auditing Standards

ICAAP

Internal Capital Adequacy Assessment Process

IFRS

International Financial Reporting Standards

IRB

Internal Ratings Based

KYC/CDD

Know Your Customer/Customer Due Diligence

LCR

Liquidity Coverage Ratio

MER

Mutual Evaluation Report

MoF

Ministry of Finance

MOU

Memorandum of Understanding

NFB

National Financial Board

NPLs

Nonperforming Loans

NSFR

Net Stable Funding Ratio

OR

Operational Risk

PEPs

Politically Exposed Persons

RAS

Risk Assessment System

RCAP

Regulatory Consistency Assessment Program

RM

Risk Management

RP

Related Party

RWA

Risk Weighted Asset

SIBs

Systemically Important Banks

SoCs

Statements of Cooperation

SREP

Supervisory Review and Evaluation Process

SIBSD

Systemically Important Banks Supervision Division

STR

Suspicious Transaction Reports

UBO

Ultimate Beneficial Owner

Russian Federation: Financial Sector Assessment Program: Detailed Assessment of Observance Basel Core Principles for Effective Banking Supervision (BCP)
Author: International Monetary Fund. European Dept.