SOCHI, Russia, Sept 13 (Reuters) - Russia’s central bank is unlikely to use domestic ratings in assessing banks’ risks under Basel III reforms, Governor Elvira Nabiullina told a conference on Friday, repeating that the central bank’s approach allows for more lending.
The finance ministry and a number of companies have publicly called for the use of domestic ratings in assessing risk under Basel III rules but the central bank wants to use its own in-house assessment, arguing that domestic ratings are undeveloped.
Nabiullina repeated on Friday that the central bank was also supporting the idea of banks using their own in-house risk assessment. So far Sberbank and the Russian unit of Raiffeisenbank have gained central bank approval to use their own ratings systems to meet the regulatory requirements. (Reporting by Elena Fabrichnaya Writing by Katya Golubkova Editing by Catherine Evans)