meta_id 3273048

On June 1, 2026, the Bank of Russia released a consultation report detailing a refined approach to evaluating the economic position of banks (OEP), which will replace the existing methodology currently in use. The updated framework introduces significant structural and operational changes designed to improve risk sensitivity and provide clearer differentiation between financial and qualitative risk factors. The primary innovation in the quantitative score involves abandoning the complex point-weighted system in favour of direct calculation of risk impact on capital. Under the previous methodology, risks were assessed in points from zero to 100 and averaged using weighted formulas, which could obscure true financial vulnerabilities. The new approach calculates losses in monetary terms for each identified risk—including credit risk, interest rate risk, currency risk, and concentration risk—and evaluates their cumulative impact on capital adequacy. This shift means risks now accumulate rather than average, preventing low scores in one area from being offset by high scores elsewhere. The quantitative score comprises two blocks: Capital and Liquidity. The Capital block consolidates all factors affecting capital adequacy, including stress sensitivity analysis, regulatory assessments of risk management systems (VPODK), financial recovery plans (PVFU), and business model quality. The Liquidity block assesses whether banks maintain sufficient high-quality liquid assets to cover potential outflows. The qualitative score now uses a composite rating system combining a numerical score (one to five) with a letter grade (A to G), replacing the previous single-number classification. This allows regulators to distinguish between banks with weak financial positions and those with governance deficiencies, as these require different supervisory responses. The qualitative assessment evaluates anti-money laundering and counter-terrorism financing compliance, misconduct risks, information security, ownership structure transparency, internal control quality, and compensation systems—drawing from existing supervisory procedures rather than creating parallel assessments. The Bank of Russia plans to implement the new methodology in phases, with the regulatory act expected in 2028 and full application beginning in 2029, allowing banks time to adapt. During the transition period, the existing methodology will remain in effect for regulatory purposes while the new OEP is calculated for supervisory monitoring only. The consultation period closes on July 25, 2026, with responses to be submitted to surveys_DBRA@cbr.ru.