Crypto exposures face 1 percent capital limit from early 2027
The Bank of Russia plans to cap banks’ cryptocurrency exposures at 1 percent of capital from early 2027. Its third-quarter 2026 regulatory review also sets out tighter treatment of immobilized assets and revised capital requirements.
Capital backs crypto and property
Proposed cryptocurrency limits N31 and N32 cover individual institutions and banking groups respectively.
Bank exposures carry a 1,250 percent risk weight, with partial netting for lower-risk instruments.
Custodial positions without sanctions liability fall outside the limit but attract a proposed 50 percent cyber-risk weight.
Separately, immobilized assets above a risk-sensitive limit will be deducted fully from capital.
The planned April 1, 2027 start introduces annual limits of 100, 85, 70, 50 and 25 percent of capital over 2027–2031.
The framework covers direct and indirect holdings, with exemptions including fixed assets below 10 percent of bank capital.
Revised concentration rules planned for Q1 2027 expand eligible CDS sellers to VEB.RF, DOM.RF and the National Clearing Centre.
Loss absorption moves earlier
For new AT1 instruments, the planned write-down or conversion trigger rises from 5.125 percent to 5.5 percent on January 1, 2027 and 6.5 percent on January 1, 2028.
Floating-rate returns may reach the policy rate plus 10 percentage points.
Internal capital assessment add-ons of 0–5 percent will increase minimum capital ratios under rules planned for January 2027.
From July 1, 2027, planned provisioning changes require official household income documents; corporate assessments will incorporate debt/EBITDA and interest coverage.
Relief remains narrowly targeted
Capital tightening coexists with targeted lending relief.
Through December 31, 2026, critical-infrastructure protection loans receive risk-weight multipliers of 30 percent for investment-grade borrowers and 50 percent for others.
Eligible loans also avoid macroprudential add-ons, within capital-saving limits.