OREANDA-NEWS. The Bank of Russia suggests setting increased risk ratios on FX loans and debt investments to ensure additional capital coverage of currency risks of the banking sector. Draft amendments to Bank of Russia Instruction No. 139-I, dated 3 December 2012, 'On Banks' Required Ratios' are published on the Bank of Russia website for discussion with financial market participants.

In particular, an increased risk ratio equal to 1.1 is envisaged to be imposed on FX loans issued to legal entities after 1 April 2016, and on debt securities denominated in foreign currency on transactions closed after 1 April 2016. In both cases, the draft regulation provides for some exceptions.

In addition, an increased ratio of 1.3 is to be introduced on FX loans issued to legal entities to purchase real estate. This is also applied to loans extended after 1 April 2016.

An increased ratio of 1.5 is envisaged to be imposed on investments in non-residents' securities made after 1 April 2016, the rights for which are certified by depositaries, which do not meet the criteria stipulated in Clause 1.2 of Bank of Russia Ordinance No. 2732-U, dated 17 November 2011.  The draft amendments are to become effective on 1 April 2016.