OREANDA-NEWS. September 08, 2015. The Bank of Russia took a decision to introduce a liquidity coverage ratio (Basel III) from 1 January 2016. The lowest permissible ratio value will make up 70% with a 10% annual increase up to 100% from 1 January 2019.

The Bank of Russia will issue a regulation to establish the procedure for the calculation of the liquidity coverage ratio (Basel III) by 1 December 2015.

When taking a decision on the timeframe for introduction of the liquidity coverage ratio, the Bank of Russia took into account the current situation in financial markets, as well as the necessity to give finishing touches to the internal information systems of credit institutions to provide calculation of and compliance with the short-term liquidity on a consolidated level.

The requirement to comply with the liquidity coverage ratio will cover systemically important credit institutions recognised in this status by the Bank of Russia in accordance with its Ordinance No. 3737-U, dated 22 July 2015, ‘On the Methodology of Defining Systematically Important Credit Institutions’. Systemically important credit institutions which are parent organisations of banking groups will fall under the requirement to observe the liquidity coverage ratio on a consolidated basis.