INSTRUCTION OF CENTRAL BANK OF THE RUSSIAN FEDERATION

of January 16, 2004 No. 110-I

About obligatory standard rates of banks

This Instruction based on the Federal Law "About the Central Bank Russian Federation (Bank of Russia)" (The Russian Federation Code, 2002, N 28, Art. 2790; 2003, N 2, Art. 157), Federal Law "About Banks and Banking Activity" (Sheet of the Congress of People's Deputies of RSFSR and Supreme Council of RSFSR, 1990, N 27, Art. 357; Russian Federation Code, 1996, N 6, Art. 492; 1998, N 31, Art. 3829; 1999, N 28, Art. 3459; N 28, of Art. 3469; N 28, of Art. 3470; 2001, N 26, Art. 2586; N 33, of Art. 3424; 2002, N 12, the Art. 1093) 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 January 14, 2004 N 1) for the purpose of regulation (restriction) of the risks accepted by banks establish numerical values and method of calculation of obligatory standard rates of banks, and also procedure the Bank of Russia of supervision of their observance.

Chapter 1. General provisions

1.1. This Instruction establishes numerical values and method of calculation of the following obligatory standard rates of banks (daleeobyazatelny standard rates):

sufficiency of own means (capital) of bank;

liquidities of banks;

the maximum extent of risk on one borrower or group of the connected borrowers;

maximum extent of large credit risks;

the maximum loan amount, bank guarantees and guarantees provided by bank to the participants (shareholders);

the cumulative size of risk on insiders of bank;

uses of own means (capital) of banks for share acquisition (shares) of other legal entities.

1.2. Other obligatory standard rates established by the Federal Law "About the Central Bank Russian Federation (Bank of Russia)" namely: the extreme size of property (non-cash) deposits to the authorized capital of credit institution, and also the list of types of property in non-cash form which can be brought in payment of the authorized capital; the minimum size of the reserves created under risks; the sizes of currency and percentage it is risk; obligatory standard rates for banking groups and non-bank credit institutions, are established by other regulations of the Bank of Russia.

1.3. Obligatory standard rates are calculated according to the techniques of their calculation determined in this Instruction based on the principles of reliability and objectivity, discretion, dominance of economic essence over form and other internationally acknowledged principles allowing to estimate qualitatively transactions and to reflect them in the reporting.

When calculating obligatory standard rates the following requirements shall be fulfilled:

if remaining balance on balance sheet accounts and (or) their parts which are not entering the list of the balance sheet accounts and (or) codes <*> given in this Instruction for calculation of the obligatory standard rate on economic content belongs to the risks regulated (limited) obligatory standard rate, the bank includes these accounts (their part) in calculation of the obligatory standard rate;

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<*> Codes - disaggregations of separate balance sheet accounts for calculation of obligatory standard rates according to appendix 1 to this Instruction.

if remaining balance on balance sheet accounts and (or) their parts entering the list of the balance sheet accounts and (or) codes given in this Instruction for calculation of the obligatory standard rate and intended for covering (reduction) of the risk regulated by it on economic content does not cover (does not reduce) this risk, the bank does not include these accounts (their part) in calculation of the obligatory standard rate.

Chapter 2. Standard rate of sufficiency of own means (capital) of bank (H 1)

2.1. The standard rate of sufficiency of own means (capital) of bank (H 1) (further - the standard rate of H1) regulates (limits) risk of insolvency of bank and determines requirements for the minimum size of own means (capital) of bank necessary for covering of credit, operational and market risks. The norm of H1 is determined as the relation of the size of own means (capital) of bank and the amount of its assets weighed on risk level. Join in calculation of the standard rate of H1:

the size of credit risk on the assets reflected in balance sheet accounts of financial accounting (assets less the created reserves on possible losses and reserves on possible losses according to loans, on the loan and equated to it debt, weighed on risk level);

the size of credit risk on contingent obligations of credit nature;

the size of credit risk on forward transactions and derivative financial instruments;

size of operational risk;

size of market risk.

The standard rate of H1 is calculated by the following formula:

where:

To - own means (capital) of bank determined according to the Provision of the Bank of Russia of February 10, 2003 No. 215-P "About technique of determination of own means (capital) of credit institutions", the registered Ministry of Justice of the Russian Federation on March 17, 2003 No. 4269, on July 17, 2006 No. 8091, on March 7, 2007 No. 9072, on July 26, 2007 No. 9910, on December 20, 2007 No. 10778, on December 12, 2008 No. 12840, on December 19, 2008 No. 12905, on June 29, 2009 No. 14161 ("the Bulletin of the Bank of Russia" of March 20, 2003 No. 15, of July 26, 2006 No. 41, of March 14, 2007 No. 14, of August 2, 2007 No. 44, of December 26, 2007 No. 71, of December 17, 2008 No. 73, of December 24, 2008 No. 74, of July 8, 2009 No. 40) (further - the Provision of the Bank of Russia No. 215-P);

Kpi - coefficient of risk of i-go of asset according to Item 2.3 of this Instruction;

Ai - i-y asset of bank;

Pki - the size of the created reserves on possible losses or reserves on possible losses according to loans, on the loan and equated to it debt of i-go of asset;

KRV - the size of credit risk on contingent obligations of credit nature calculated according to the procedure, established by appendix 2 to this Instruction, code 8810;

KRS - the size of credit risk on forward transactions and derivative financial instruments calculated according to the procedure, established by appendix 3 to this Instruction, code 8811;

SHOUTING - the size of operational risk calculated according to requirements of the regulation of the Bank of Russia about procedure of payments credit institutions of the extent of operational risk, code 8942;

RR - the size of market risk calculated according to the Provision of the Bank of Russia of November 14, 2007 No. 313-P "About procedure of payments credit institutions of size of market risk", the registered Ministry of Justice of the Russian Federation on December 6, 2007 No. 10638 ("the Bulletin of the Bank of Russia" of December 12, 2007 No. 68) (further - the Provision of the Bank of Russia No. 313-P), code 8812;

The personal computer - transactions with the increased risk coefficients (codes: 8809, 8814, 8816, 8818, 8820, 8822, 8824, 8826, 8828, 8830, 8832, 8834, 8836, 8838). The indicator of the personal computer is used when calculating the standard rate of sufficiency of own means (capital) of bank.

Do not join in measure calculation of the personal computer:

the assets relating to the I-III and V groups of assets according to subitems 2.3.1 - 2.3.3 and 2.3.5 Items 2.3 of this Instruction, and also the credit requirements and requirements for receipt of the added (cumulative) percent specified in code 8806;

the assets reducing the amount of sources of the fixed and (or) supplementary capital based on subitem 2.2.6 of Item 2.2 and Item 5.2 of the Provision of the Bank of Russia N 215-P;

credit requirements and requirements for receipt of the added (cumulative) percent to Central Banks and the governments of the countries - members of the Commonwealth of Independent States irrespective of country assessment.

2.2. Minimum admissible numerical value of the standard rate H1 is established in the amount of 10 percent.

2.3. When calculating the standard rate of H1 banks estimate assets based on the following classification of risks:

2.3.1. I group of assets risk Coefficient (as a percentage)

cash and checks (including travel checks) which nominal value is specified in foreign currency, gold in storages of bank and in transit, code 8962 0

means on accounts of credit institutions on cash servicing of branches, accounts (part of the account) 30210 0

the amounts deposited in organizations of the Bank of Russia for obtaining by the next day of cash and gold, code 8969 0

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