Russian banks face higher capital requirements by 2030
The Bank of Russia proposes to raise minimum capital requirements for banks with a universal licence from ₽1 billion to ₽3 billion and for those with a basic licence from ₽0.3 billion to ₽1 billion. The new requirements are planned for gradual introduction between 2028 and 2030.
Phased increase for existing banks
The Bank of Russia proposes to significantly raise minimum capital requirements for banks, a move not seen since their establishment in 2018.
Universal licence banks would see their minimum capital increase from ₽1 billion to ₽3 billion, while basic licence banks would go from ₽0.3 billion to ₽1 billion.
This adjustment reflects banks' scaled-up business activity, increased operational complexity, and the necessity for substantial investment in information technology over the past years.
For existing banks, the new requirements will be introduced gradually between 2028 and 2030.
Universal banks will need ₽1.5 billion by 2028, ₽2.0 billion by 2029, and ₽3.0 billion by 2030.
Basic licence banks will follow a schedule of ₽0.5 billion, ₽0.7 billion, and ₽1.0 billion for the same years, respectively.
Special conditions and future plans
New banks licenced after 1 January 2028 must immediately meet the 2030 capital targets.
The Bank of Russia considers special conditions for banking groups, potentially applying the ₽3 billion minimum solely to the parent credit institution, exempting other group members.
Discussions are also open for a special approach for 'Alliance model' participants, contingent on bank readiness and legal framework development with community involvement.
Legal amendments are planned for 2027 H1, with new requirements effective from 1 January 2028.
Feedback on the consultation paper is invited until 3 July 2026.
Strengthening resilience, slowly
Raising capital requirements is a necessary, if delayed, move reflecting the Russian banking sector's growth since 2018.
However, the gradual implementation for existing banks risks a slow build-up of resilience in a dynamic economic environment.
Pragmatic special conditions for banking groups and the 'Alliance model' add complexity, potentially diluting the framework's strengthening effect.