Department of Banking Regulation and Analytics

The Bank of Russia established the Department of Banking Regulation and Analytics in 2021 through the consolidation of the Banking Regulation Department and the Banking Supervision Support Department.

The key areas of the Department’s work are as follows:

• Regulation of credit institutions’ activities based on the analysis of existing and potential risks;
• Data analytics in risk assessment and banking sector development;
• Supervisory stress testing of banks; and
• Methodological and information support for banking supervision.

The Department’s key objective in regulation is to develop a regulatory framework for three main components ensuring banks’ reliability. These are quantitative requirements for the assessment and coverage of banking risks through prudential ratios; requirements for banks’ risk and capital management systems; and the forms of banking reporting on risks, ratios, and the procedure for information disclosure by banks to improve market discipline.

The Department develops methodological recommendations on banks’ financial risk modelling to be used within internal ratings-based approaches and in internal capital adequacy and liquidity assessment procedures.

The Department is also responsible for preparing analytical and statistical materials on the situation in the banking sector that are published on the Bank of Russia website.

As part of supervisory stress testing, the Department elaborates the methodology for assessing credit institutions’ resilience to economic shocks and carries out regular stress tests of the sector and individual banks.

As regards methodological and information support for banking supervision, the Department assesses banks’ risk and capital management systems and the methodology for applying enforcement measures against credit institutions and banking groups. Another important area of work is the assessment of banks’ economic performance and financial position, including for the purpose of their participation in the deposit insurance system. The Department also creates and supports information and analytical products and systems for banking supervision.