INSTRUCTION OF CENTRAL BANK OF THE RUSSIAN FEDERATION

of June 6, 2019 No. 5163-U

About modification of the Provision of the Bank of Russia of July 4, 2018 No. 646-P "About technique of determination of own means (capital) of credit institutions ("Basel III")"

1. Based on article 72 of the Federal Law of July 10, 2002 No. 86-FZ "About the Central bank the Russian Federation (Bank of Russia)" (The Russian Federation Code, 2002, No. 28, Art. 2790; 2003, No. 2, Art. 157; No. 52, Art. 5032; 2004, No. 27, Art. 2711; No. 31, Art. 3233; 2005, No. 25, Art. 2426; No. 30, Art. 3101; 2006, No. 19, Art. 2061; No. 25, Art. 2648; 2007, No. 1, Art. 9, Art. 10; No. 10, Art. 1151; No. 18, Art. 2117; 2008, No. 42, Art. 4696, Art. 4699; No. 44, Art. 4982; No. 52, Art. 6229, Art. 6231; 2009, No. 1, Art. 25; No. 29, Art. 3629; No. 48, Art. 5731; 2010, No. 45, Art. 5756; 2011, No. 7, Art. 907; No. 27, Art. 3873; No. 43, Art. 5973; No. 48, Art. 6728; 2012, No. 50, Art. 6954; No. 53, Art. 7591, Art. 7607; 2013, No. 11, Art. 1076; No. 14, Art. 1649; No. 19, Art. 2329; No. 27, Art. 3438, Art. 3476, Art. 3477; No. 30, Art. 4084; No. 49, Art. 6336; No. 51, Art. 6695, Art. 6699; No. 52, Art. 6975; 2014, No. 19, Art. 2311, Art. 2317; No. 27, Art. 3634; No. 30, Art. 4219; No. 40, Art. 5318; No. 45, Art. 6154; No. 52, Art. 7543; 2015, No. 1, Art. 4, Art. 37; No. 27, Art. 3958, Art. 4001; No. 29, Art. 4348, Art. 4357; No. 41, Art. 5639; No. 48, Art. 6699; 2016, No. 1, Art. 23, Art. 46, Art. 50; No. 26, Art. 3891; No. 27, Art. 4225, Art. 4273, Art. 4295; 2017, No. 1, Art. 46; No. 14, Art. 1997; No. 18, Art. 2661, Art. 2669; No. 27, Art. 3950; No. 30, Art. 4456; No. 31, Art. 4830; No. 50, Art. 7562; 2018, No. 1, Art. 66; No. 9, Art. 1286; No. 11, Art. 1584, Art. 1588; No. 18, Art. 2557; No. 24, Art. 3400; No. 27, Art. 3950; No. 31, Art. 4852; No. 32, Art. 5115; No. 49, Art. 7524; No. 53, Art. 8411, Art. 8440; 2019, No. 18, the Art. 2198) and according to the solution of the Board of directors of the Bank of Russia (the minutes of the Board of directors of the Bank of Russia of May 31, 2019 No. 10) to bring in the Provision of the Bank of Russia of July 4, 2018 No. 646-P "About technique of determination of own means (capital) of credit institutions ("Basel III")", registered by the Ministry of Justice of the Russian Federation on September 10, 2018 No. 52122, on December 19, 2018 No. 53064, the following changes.

1.1. In Item 2:

state subitem 2.2.9.1 in the following edition:

"2.2.9.1. Insignificant investments of credit institution in ordinary shares (shares) of the financial organizations.

The investment of credit institution in ordinary shares (shares) and other capital sources of the financial organization is insignificant if the credit institution holds ordinary shares (shares) of the financial organization in the amount making less than 10 percent from the authorized capital (part of the authorized capital) of the financial organization created by ordinary shares (shares), registered for settlement date of size of the capital of credit institution and No. 948-1 "About the competition and restriction of monopolistic activities in the goods markets" is not affiliate of the financial organization according to article 4 of the Law RSFSR of March 22, 1991 (Sheets of the Congress of People's Deputies of RSFSR and the Supreme Council of RSFSR, 1991, No. 16, Art. 499; Russian Federation Code, 1995, No. 22, Art. 1977; 1998, No. 19, Art. 2066; 2002, No. 41, Art. 3969; 2006, No. 31, Art. 3434).

Investment of credit institution in tools which do not belong to tools of the capital of global systemically significant banks (further - GSZB) and provide capability of absorption of losses of GSZB at stage of settlement of their insolvency by means of discharge of tools and (or) exchange (converting) of requirements for them of ordinary shares GSZB (further - the tools providing the SPU of GSZB), is insignificant in the case provided by the paragraph the second this subitem.

Investments of credit institution in the tools providing the SPU of GSZB are determined in subitem 3.2.7 of Item 3 this provision.

The list of GSZB is published on the official site of Council for financial stability in the Internet.

In reduction of the amount of sources of the basic capital by credit institution the cumulative amount of insignificant investments of credit institution of the capital sources of the financial organizations, tools providing the SPU of GSZB determined based on this subitem, subitems 2.4.3.1 and 2.4.4.1 of this Item and subitems 3.2.3 is accepted. 1, 3.2.4.1 and 3.2.7.1 Items 3 this provision, less the investments determined according to the paragraph the tenth subitem 2.2. 9, paragraph the second subitem 2.4. 3, paragraph the second subitem 2.4.4 of this Item, paragraph the second subitem 3.2. 3, the paragraph the second subitem 3.2.4 of Item 3 this provision, in the part exceeding 10 percent from the size of the basic capital of the credit institution (calculated taking into account application of subitems 2.2. 1, 2.2.2, 2.2.4, 2.2.6 - 2.2. 8, and also the paragraph of the tenth subitem 2.2.9 of this Item), falling on investments in ordinary shares (shares) of the financial organizations.";

to state paragraph two of subitem 2.2.9.2 in the following edition:

"The investment of credit institution in ordinary shares (shares), other capital sources of the financial organization and (or) tools providing the SPU of GSZB is essential if the credit institution holds ordinary shares (shares) of the financial organization in the amount making 10 percent and more from the authorized capital (part of the authorized capital) of the financial organization created by ordinary shares (shares), registered for settlement date of size of the capital of credit institution or if the financial organization is affiliate of credit institution according to article 4 of the Law RSFSR of March 22, 1991 No. 948-1 "About the competition and restriction of monopolistic activities in the goods markets".";

to state paragraph two of subitem 2.4.3.1 in the following edition:

"In reduction of the amount of sources of the added capital by credit institution the cumulative amount of insignificant investments of credit institution of the capital sources of the financial organizations, tools providing the SPU of GSZB determined based on this subitem, subitems 2.2.9.1 and 2.4.4.1 of this Item and subitems 3.2.3 is accepted. 1, 3.2.4.1 and 3.2.7.1 Items 3 this provision, less the investments determined according to the paragraph the tenth subitem 2.2. 9, paragraph the second subitem 2.4. 3, paragraph the second subitem 2.4.4 of this Item, paragraph the second subitem 3.2. 3, the paragraph the second subitem 3.2.4 of Item 3 this provision, in the part exceeding 10 percent from the size of the basic capital of the credit institution (calculated taking into account application of subitems 2.2. 1, 2.2.2, 2.2.4, 2.2.6 - 2.2. 8, and also the paragraph of the tenth subitem 2.2.9 of this Item), falling on investments in the shares of the financial organizations specified in subitem 2.4.3 of this Item.";

to state paragraph two of subitem 2.4.4.1 in the following edition:

"In reduction of the amount of sources of the added capital by credit institution the cumulative amount of insignificant investments of credit institution of the capital sources of the financial organizations, tools providing the SPU of GSZB determined based on this subitem, subitems 2.2.9.1 and 2.4.3.1 of this Item and subitems 3.2.3 is accepted. 1, 3.2.4.1 and 3.2.7.1 Items 3 this provision, less the investments determined according to the paragraph the tenth subitem 2.2. 9, paragraph the second subitem 2.4. 3, paragraph the second subitem 2.4.4 of this Item, paragraph the second subitem 3.2. 3, the paragraph the second subitem 3.2.4 of Item 3 this provision, in the part exceeding 10 percent from the size of the basic capital of the credit institution (calculated taking into account application of subitems 2.2. 1, 2.2.2, 2.2.4, 2.2.6 - 2.2. 8, and also the paragraph of the tenth subitem 2.2.9 of this Item), falling on the insignificant subordinated credits (deposits, loans, bonded loans) specified in this subitem.".

1.2. In Item 3:

in subitem 3.2:

to state paragraph two of subitem 3.2.3.1 in the following edition:

"In reduction of the amount of sources of the supplementary capital by credit institution the cumulative amount of insignificant investments of credit institution of the capital sources of the financial organizations, tools providing the SPU of GSZB determined based on this subitem, subitems 2.2.9 is accepted. 1, 2.4.3.1 and 2.4.4.1 Items 2 this provision, subitems 3.2.4.1 and 3.2.7.1 of this Item, less the investments determined according to the paragraph the tenth subitem 2.2. 9, paragraph the second subitem 2.4. 3, paragraph the second subitem 2.4.4 of Item 2 this provision, paragraph the second subitem 3.2. 3, the paragraph the second subitem 3.2.4 of this Item, in the part exceeding 10 percent from the size of the basic capital of the credit institution (calculated taking into account application of subitems 2.2. 1, 2.2.2, 2.2.4, 2.2.6 - 2.2. 8, and also the paragraph of the tenth subitem 2.2.9 of Item 2 this provision), falling on investments in the shares of the financial organizations specified in paragraph one of subitem 3.2.3 of this Item.";

to state paragraph two of subitem 3.2.4.1 in the following edition:

"In reduction of the amount of sources of the supplementary capital by credit institution the cumulative amount of insignificant investments of credit institution of the capital sources of the financial organizations, tools providing the SPU of GSZB determined based on this subitem, subitems 2.2.9 is accepted. 1, 2.4.3.1 and 2.4.4.1 Items 2 this provision, subitems 3.2.3.1 and 3.2.7.1 of this Item, less the investments determined according to the paragraph the tenth subitem 2.2. 9, paragraph the second subitem 2.4. 3, paragraph the second subitem 2.4.4 of Item 2 this provision, paragraph the second subitem 3.2. 3, the paragraph the second subitem 3.2.4 of this Item, in the part exceeding 10 percent from the size of the basic capital of the credit institution (calculated taking into account application of subitems 2.2. 1, 2.2.2, 2.2.4, 2.2.6 - 2.2. 8, and also the paragraph of the tenth subitem 2.2.9 of Item 2 this provision), falling on the insignificant subordinated credits (deposits, loans, bonded loans) specified in this subitem.";

add with subitem 3.2.7 of the following content:

"3.2.7. Investments of credit institution in the tools providing the SPU of GSZB.

The tools issued by GSZB or one of the GSZB affiliated organizations recognized by those according to the right of foreign state (if the strategy of settlement of insolvency of GSZB allows possibility of settlement of insolvency of GSZB at the level of the separate affiliated organizations entering into the GSZB group) belong to the tools providing the SPU of GSZB, the satisfaction of requirements for which at stage of settlement of insolvency of GSZB occurs after satisfaction of requirements for the tools which are not switched on in structure of the tools providing the SPU of GSZB, specified in paragraphs five - the eleventh this subitem, and also the tools meeting the criteria established by supervisory authority of the country of the location (registration) of GSZB for inclusion specified tools in structure of the tools providing the SPU of GSZB.

Also tools, the satisfaction of requirements for which at stage of settlement of insolvency of GSZB occurs along with satisfaction of requirements for the tools specified in paragraphs five - the eleventh this subitem, belong to the tools providing the SPU of GSZB.

Do not join in structure of the tools providing the SPU of GSZB:

the deposits which are subject to compulsory insurance;

on-demand deposits and deposits with remaining period of return for settlement date of the capital of GSZB less than one year;

obligations on derivative financial instruments;

debt financial instruments with the built-in derivative financial instruments;

the obligations which are following from the non-contractual relations, including subject to payment in the budget taxes and fees;

obligations, the satisfaction of requirements for which occurs mainly before satisfaction of unsecured requirements of creditors of the first priority, including secured liabilities in the amount of the secure amount;

tools on which obligations are not subject to the termination and (or) requirements according to which are not subject to exchange (converting) on ordinary shares GSZB at stage of settlement of insolvency of GSZB.

In calculation of investments in the tools providing the SPU of GSZB, except for short-term (with stay term on balance up to 5 working days), shall be accepted by credit institution:

direct and (or) indirect investments in the tools providing the SPU of GSZB, specified in paragraphs second and third this subitem;

direct and (or) indirect investments in the GSZB tools which are not the tools providing the SPU of GSZB, the satisfaction of requirements for which at stage of settlement of insolvency of GSZB occurs along with satisfaction of requirements for the tools providing the SPU of GSZB, specified in the paragraph the second this subitem.

The size of investments in the tools providing the SPU of GSZB, specified in paragraph three of this subitem (VL) shall be determined by credit institution by formula:

 

where:

With - the cumulative size of investments in the tools providing the SPU of GSZB, specified in paragraph three of this subitem;

B1 - the size accepting 2,5 value of percent (in case of establishment by supervisory authority of the country of the location (registration) of GSZB of the minimum requirements to sufficiency of the tools providing the SPU of GSZB in the amount of 16 percent) or percent 3,5 (in case of establishment by supervisory authority of the country of the location (registration) of GSZB of the minimum requirements to sufficiency of the tools providing the SPU of GSZB in the amount of 18 percent);

B2 - share of the tools providing the SPU of GSZB specified in paragraph three of this subitem from assets of GSZB weighed taking into account risk (as a percentage).

If the indicator of B1 exceeds B2, indicator the indicator of VL is accepted by Page equal to indicator.

Requirements of this provision for investments of credit institution in the tools providing the SPU of GSZB extend to banks with the universal license.

The supplementary capital shall decrease credit institution by the size of its investments in the tools providing the SPU of GSZB from the date established by supervisory authority of the country of the location (registration) of GSZB on which the minimum requirements to sufficiency of the tools providing the SPU of GSZB begin to be applied to GSZB - the issuer of the specified tools.

In case of determination of accounting treatment for investments in the tools providing the SPU of GSZB when calculating size of own means (capital) credit institutions shall be guided by information on detailed characteristics of the tools providing the SPU of GSZB (including priority of satisfaction of requirements for them, amounts and repayment periods) which is publicly opened by GSZB.

3.2.7.1. Insignificant investments of credit institution in the tools providing the SPU of GSZB, specified in subitem 3.2.7 of this Item.

In reduction of the amount of sources of the supplementary capital of credit institution the cumulative amount of insignificant investments of credit institution of the capital sources of the financial organizations, tools providing the SPU of GSZB determined based on this subitem, subitems 2.2.9 shall be accepted. 1, 2.4.3.1 and 2.4.4.1 Items 2 this provision, subitems 3.2.3.1 and 3.2.4.1 of this Item, less the investments determined according to the paragraph the tenth subitem 2.2. 9, paragraph the second subitem 2.4. 3, paragraph the second subitem 2.4.4 of Item 2 this provision, paragraph the second subitem 3.2. 3, the paragraph the second subitem 3.2.4 of this Item, in the part exceeding 10 percent from the size of the basic capital of the credit institution (calculated taking into account application of requirements of subitems 2.2. 1, 2.2.2, 2.2.4 - 2.2. 8, and also the paragraph of the tenth subitem 2.2.9 of Item 2 this provision), the credit institution falling on investments in the tools providing the SPU of GSZB, specified in subitem 3.2.7 of this Item.

3.2.7.2. Essential investments of credit institution in the tools providing the SPU of GSZB, specified in subitem 3.2.7 of this Item.

The cumulative amount of essential investments of the tools providing the SPU of GSZB shall be accepted by credit institution in reduction of the supplementary capital of credit institution in full.".

1.3. In paragraph nine of subitem 8.1 of Item 8:

exclude the words "according to table 2 of this subitem";

add with the offer of the following content: "Such exception shall be performed by credit institution in the amount of 50 percent (since January 1, 2020 - in the amount of 100 percent) from the amount of the tool which developed as of January 1, 2018 taking into account requirements of subitem 3.1.8.6 of Item 3 this provision.";

recognize table 2 invalid.

2. This Instruction becomes effective after 10 days after day of its official publication.

 

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