Kostin announced the need for new standards for regulating banks

For bankers, the world "will never be the same," says Andrey Kostin, HEAD of VTB. In his opinion,

it is hardly worth it for RUSSIA to fully adhere to the Basel regulations - the regulatory standards developed by the Basel Committee on Banking Supervision, which the Russian Central Bank also adheres to. This opinion was expressed in a column for RBC by the head of VTB Andrey Kostin. However, the Bank of Russia is not inclined to abandon international approaches to regulation, although it is ready to adjust them taking into account economic specifics.

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“For bankers, the world really will never be the same again.” This is not a figure of speech. Now the former "partners" do not get tired of repeating that business as usual is no longer possible. Russia is deprived of access to major capital markets and payment systems, international ratings, and audit services. Therefore, the sooner we and our clients accept this fact, start looking for viable alternatives and new opportunities for growth, the better,” said Kostin.

Andrey Kostin start from scratch. VTB CEO on new financial market principles Opinion

“I'm not sure that, being outside the perimeter of the Western financial system today, Russia should continue to fully adhere to the Basel standards calibrated for Western markets. The regulator has already expressed its readiness to “fine-tune” the use of Basel, taking into account current realities, which will certainly provide significant support to the sector and the economy as a whole,” he added.

According to the banker, Russia now "has a unique chance to start from scratch", that is, to create its own versions of banking regulation and a national credit rating. “The relevant provisions of existing international standards may well find their place in them. But above all, such future standards should reflect the realities and priorities of the Russian economy,” the head of VTB summed up.

The Central Bank promised to "adjust" the banking system instead of a "catastrophe" Finance

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Kostin has already come up with the idea of ​​abolishing these standards - at the end of May he said that following the principles of Basel III (the standards developed as a response to the 2008 crisis) "is becoming absurd in many ways", and jokingly suggested creating a Russian analogue instead under the name "Voronezh I".

However, this idea did not meet with the support of the Central Bank, which traditionally sets standards and capital requirements on the basis of the Basel approaches. According to the head of the Central Bank Elvira Nabiullina, they are based on many years of experience and regulation practice. At the same time, she promised to take into account Russian specifics and refine the Central Bank's regulatory approaches: “We need to determine new parameters for the functioning of the Russian financial system. Reconsider approaches to regulation so that, without allowing excessive risks to accumulate, banks can continue lending and support the structural transformation of the economy.”

Nabiullina - about stagflation, the oil embargo and a strong ruble. Home Finance

First Deputy Chairman Dmitry Tulin also spoke about the fact that the Central Bank will not abandon the basic principle of Basel III, which implies that the bank has sufficient capital to cover possible risks. However, the Bank of Russia "never took Basel as a scripture," he stressed, and now plans to focus on capital and reserve requirements based on analytical calculations and "current economic realities."

After the start of the military operation, the Central Bank controlled the state of banks manually, but now it will start working on new regulation of the sector, Tulin pointed out. Now the Central Bank is evaluating the scale and format of the necessary additional capitalization of Russian banks. Their reporting after the imposition of sanctions was classified, so it is impossible to understand how the financial situation of the sector worsened due to the crisis.