INSTRUCTION OF CENTRAL BANK OF THE RUSSIAN FEDERATION

of November 27, 2018 No. 4987-U

About modification of the Provision of the Bank of Russia of July 4, 2018 No. 646-P "About technique of determination of own means (capital) of credit institutions ("Basel III")"

1. Based on article 72 of the Federal Law of July 10, 2002 No. 86-FZ "About the Central bank the Russian Federation (Bank of Russia)" (The Russian Federation Code, 2002, No. 28, Art. 2790; 2003, No. 2, Art. 157; No. 52, Art. 5032; 2004, No. 27, Art. 2711; No. 31, Art. 3233; 2005, No. 25, Art. 2426; No. 30, Art. 3101; 2006, No. 19, Art. 2061; No. 25, Art. 2648; 2007, No. 1, Art. 9, Art. 10; No. 10, Art. 1151; No. 18, Art. 2117; 2008, No. 42, Art. 4696, Art. 4699; No. 44, Art. 4982; No. 52, Art. 6229, Art. 6231; 2009, No. 1, Art. 25; No. 29, Art. 3629; No. 48, Art. 5731; 2010, No. 45, Art. 5756; 2011, No. 7, Art. 907; No. 27, Art. 3873; No. 43, Art. 5973; No. 48, Art. 6728; 2012, No. 50, Art. 6954; No. 53, Art. 7591, Art. 7607; 2013, No. 11, Art. 1076; No. 14, Art. 1649; No. 19, Art. 2329; No. 27, Art. 3438, Art. 3476, Art. 3477; No. 30, Art. 4084; No. 49, Art. 6336; No. 51, Art. 6695, Art. 6699; No. 52, Art. 6975; 2014, No. 19, Art. 2311, Art. 2317; No. 27, Art. 3634; No. 30, Art. 4219; No. 40, Art. 5318; No. 45, Art. 6154; No. 52, Art. 7543; 2015, No. 1, Art. 4, Art. 37; No. 27, Art. 3958, Art. 4001; No. 29, Art. 4348, Art. 4357; No. 41, Art. 5639; No. 48, Art. 6699; 2016, No. 1, Art. 23, Art. 46, Art. 50; No. 26, Art. 3891; No. 27, Art. 4225, Art. 4273, Art. 4295; 2017, No. 1, Art. 46; No. 14, Art. 1997; No. 18, Art. 2661, Art. 2669; No. 27, Art. 3950; No. 30, Art. 4456; No. 31, Art. 4830; No. 50, Art. 7562; 2018, No. 1, Art. 66; No. 9, Art. 1286; No. 11, Art. 1584, Art. 1588; No. 18, Art. 2557; No. 24, Art. 3400; No. 27, Art. 3950; No. 31, Art. 4852; No. 32, the Art. 5115) 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 November 23, 2018 No. 35) to bring in the Provision of the Bank of Russia of July 4, 2018 No. 646-P "About technique of determination of own means (capital) of credit institutions ("Basel III")", registered by the Ministry of Justice Russian on September 10, 2018 No. 52122, the following changes.

1.1. In Item 2:

in subitem 2.1.7:

figure in paragraph three "61304," and figures "70605," to exclude 61301,, after figures "70613" to add with words "(except for revaluations of hedging instruments of cash flows on the objects of hedging which are not estimated at fair value)";

figure in paragraph four "61403," and figures "70610," to exclude 61401,, after figures "70614" to add with words "(except for revaluations of hedging instruments of cash flows on the objects of hedging which are not estimated at fair value)";

to state the paragraph of the seventh in the following edition:

"The income, other comprehensive income relating to revaluation of the securities certifying the property right or common ownership on the assets which are under control of the companies including performing the activities without formation of legal entity (for example, fund, partnership, partnership, trust, other form of implementation of collective investments and (or) trust management) (further - managing companies) (including the income, other comprehensive income reflected in case of initial recognition of securities), except for the income, the other comprehensive income relating to revaluation of the specified securities concerning which requirements for forming of reserve of possible losses according to the Provision of the Bank of Russia of October 23, 2017 No. 611-P extend join credit institution in calculation of own means (capital) according to this subitem, subitems 2.1. 8, 2.2.7 and 2.2.8 these Items, and also subitems 3.1.6 and 3.1.7 of Item 3 this provision after disposal (realization) of securities.";

in paragraph nine of the word "less" shall be replaced with words "taking into account";

the twelfth to declare the paragraph invalid;

add with paragraphs of the following content:

"The indicators determined in this subitem, in subitems 2.1. 8, 2.2.7 and 2.2.8 these Items, and also in subitems 3.1.6 and 3.1.7 of Item 3 this provision, are also adjusted by credit institution on:

size of the interest incomes added, but actually not gained by credit institution according to the loans, other assets classified in IV and V quality categories according to requirements of the Provision of the Bank of Russia of June 28, 2017 No. 590-P and the Provision of the Bank of Russia of October 23, 2017 No. 611-P, taking into account the reserves on possible losses created in proportion to the specified part of the income (from the moment of reclassification of loans, other assets from IV and V quality categories in the I-III quality category the added, but actually not gained interest incomes on the specified assets join credit institution in calculation of own means (capital) in full);

the cost amount according to the transaction on financial liabilities and financial assets reflected in the balance sheet account No. 47440.

In calculation of own means (capital) according to this subitem, subitems 2.1. 8, 2.2.7 and 2.2.8 these Items, and also subitems 3.1.6 and 3.1.7 of Item 3 this provision credit institution do not join the remaining balance on balance sheet accounts on accounting of the income, expenses, the added capital reflected according to the Provision of the Bank of Russia of February 27, 2017 No. 579-P "About the Chart of accounts of financial accounting for credit institutions and procedure for its application", the registered Ministry of Justice of the Russian Federation on March 20, 2017 No. 46021, on July 20, 2017 No. 47474, on December 12, 2017 No. 49220, on March 12, 2018 No. 50299, on December 3, 2018 No. 52845 (further - the Provision of the Bank of Russia of February 27, 2017 No. 579-P), for the account:

the adjustments increasing (reducing) cost of the provided (placed) money, the acquired rights to claim after their initial recognition;

adjustments, increasing (reducing) cost borrowed funds, issued securities in case of initial recognition, and also in case of the subsequent value assessment of the specified financial liabilities;

the adjustments increasing (reducing) cost agreement obligations of the bank guarantee and to provision of money in case of initial recognition, and also in case of the subsequent value assessment of the specified obligations;

the adjustments increasing (reducing) cost debt securities after their initial recognition;

the adjustments and revaluation increasing (reducing) cost financial assets concerning which requirements for forming of reserve of possible losses according to the Provision of the Bank of Russia of June 28, 2017 No. 590-P and the Provision of the Bank of Russia of October 23, 2017 No. 611-P extend, in case of initial recognition;

the revaluation increasing (reducing) the cost of the financial assets estimated at fair value through profit or loss or through other comprehensive income concerning which requirements for forming of reserve of possible losses according to the Provision of the Bank of Russia of June 28, 2017 No. 590-P and the Provision of the Bank of Russia of October 23, 2017 No. 611-P, after their initial recognition extend;

the revaluation increasing (reducing) the cost of borrowed funds, the issued securities estimated at fair value through profit or loss;

the provision under the expected credit losses reflected in balance sheet accounts No. No. 10630, 10631;

adjustments of the created reserve on possible losses to the provision amount under the expected credit losses.

Requirements of the paragraph of twenty third this subitem do not extend to the income from transactions on acquisition of assets by credit institution according to article 5 of the Federal Law of July 29, 2018 No. 263-FZ "About modification of separate legal acts of the Russian Federation" (The Russian Federation Code, 2018, No. 31, the Art. 4852) reflected in balance sheet accounting. The specified income joins credit institution in calculation of own means (capital) in the amount of the reserves created under the assets acquired by credit institution according to the Provision of the Bank of Russia of June 28, 2017 No. 590-P and the Provision of the Bank of Russia of October 23, 2017 No. 611-P.".

in subitem 2.1.8:

figure in paragraph three "70705," to exclude;

figure in paragraph four "70710," to exclude;

in subitem 2.2.1:

in paragraphs four and the fifth shall be replaced with words the words "less" "taking into account";

in subitem 2.2.4:

in paragraphs five and pole of the word "less" shall be replaced with words "taking into account";

to state paragraph two of subitem 2.2.4.1 in the following edition:

"Investments in the shares specified in this subitem (including in the shares which are under control of managing companies), including share premium of credit institution in form of business of joint-stock company, are accepted by credit institution in reduction of the basic capital based on these balance sheet accounts No. No. 10207, of 10501, of 10602, of 47901, 506 (except for 50620, 50621, 50670, 50671), 507 (except for 50720, 50721, 50770, 50771), 60106, 60118, 60323, and also these corresponding balance sheet accounts specified in Item 4.59 of part II of appendix to the Provision of the Bank of Russia of February 27, 2017 to No. 579-P taking into account the reserve on possible losses created according to requirements of the Provision of the Bank of Russia of June 28, 2017 No. 590-P, Provisions of the Bank of Russia of October 23, 2017 No. 611-P Instructions of the Bank of Russia of November 17, 2011 No. 2732-U i of the Instruction of the Bank of Russia of June 22, 2005 No. 1584-U.";

in subitem 2.2.6:

in paragraph five of the word "less" shall be replaced with words "taking into account";

in the paragraph the second subitem 2.2.6.1 of the word "less" shall be replaced with words "taking into account";

in the paragraph the second the subitem 2.2.6.2 figures "506, 507" shall be replaced with words "506 (except for 50620, 50621, 50670, 50671), 507 (except for 50720, 50721, 50770, 50771)";

in subitem 2.2.7:

figure in paragraph three "70710," to exclude;

figure in paragraph four "70705," to exclude;

figure in paragraph five "70705," and figures "70710," to exclude;

in subitem 2.2.8:

figure in paragraph three "61403," and figures "70610," to exclude 61401,, after figures "70614" to add with words "(except for revaluations of hedging instruments of cash flows on the objects of hedging which are not estimated at fair value)";

figure in paragraph four "61304," and figures "70605," to exclude 61301,, after figures "70613" to add with words "(except for revaluations of hedging instruments of cash flows on the objects of hedging which are not estimated at fair value)";

the fifth to declare the paragraph invalid;

in subitem 2.2.9:

in paragraphs five - the seventh shall be replaced with words the words "less" "taking into account";

the ninth and tenth to state paragraphs in the following edition:

"Shares (share) specified in this subitem (including shares (share) which are under control of managing companies), are accepted by credit institution in reduction of the basic capital based on these corresponding balance sheet accounts No. No. 47901, of 506, of 507, 601A (except for 60107), 60201, 60202, 60203, 60204, 60323, and also these corresponding balance sheet accounts determined by Item 4.59 of part II of appendix to the Provision of the Bank of Russia of February 27, 2017 No. 579-P taking into account the reserves on possible losses created according to requirements of the Provision of the Bank of Russia of June 28, 2017 No. 590-P, Provisions of the Bank of Russia of October 23, 2017 No. 611-P, Instructions of the Bank of Russia of November 17, 2011 No. 2732-U i of the Instruction of the Bank of Russia of June 22, 2005 No. 1584-U. In case of payment of the sources of own means (capital) of credit institutions of investments accepted in reduction in shares (shares), subordinated tools of the financial organizations according to this subitem, and also subitems 2.4.3.3 and 2.4.4.3 of Item 2, with subitems 3.2.3.3 and 3.2.4.3 of Item 3 this provision by credit institution are not considered the adjustments reducing (increasing) cost of the provided (placed) money, and also revaluation, the increasing (reducing) cost of the financial assets estimated at fair value through profit or loss or through other comprehensive income concerning which requirements for forming of reserve of possible losses according to the Provision of the Bank of Russia of June 28, 2017 No. 590-P and the Provision of the Bank of Russia of October 23, 2017 No. 611-P extend.

The cumulative size of the counter investments of credit institution and financial organization in shares (shares) answering to conditions of this subitem is accepted by credit institution in reduction of the amount of sources of the basic capital in the full amount of investments specified in the agreement, taking into account the revaluation increasing (reducing) the cost of the placed money (except for the revaluation increasing (reducing) the cost of the financial assets estimated at fair value through profit or loss or through other comprehensive income concerning which requirements for forming of reserve of possible losses according to the Provision of the Bank of Russia of June 28, 2017 No. 590-P and the Provision of the Bank of Russia of October 23, 2017 No. 611-P) extend.";

in the paragraph twenty third subitem 2.3.1 of the word of "subitem 3.2.1" shall be replaced with words "subitem 3.1.2";

add subitem 2.3.4 with subitem 2.3.4.4 of the following content:

"2.3.4.4. The size of the subordinated credits (deposits, loans, bonded loans) included by credit institution in structure of sources of the added capital and also the amount of the subordinated tool accepted by credit institution to calculation for the purpose of discharge of the subordinated tool and exchange (converting) of requirements of creditors on it is determined by credit institution according to subitem 3.1.8.7 of Item 3 this provision.";

in the paragraph the second subitem 2.4.1 of the word "506, 507, 60106, 60118, 60323, and also these corresponding balance sheet accounts determined by Item 4.59 of part II of appendix to the Provision of the Bank of Russia of February 27, 2017 No. 579-P less" shall be replaced with words "506 (except for 50620, 50621, 50670, 50671), 507 (except for 50720, 50721, 50770, 50771), 60106, 60118, 60323, and also these corresponding balance sheet accounts determined by Item 4.59 of part II of appendix to the Provision of the Bank of Russia of February 27, 2017 No. 579-P taking into account";

in the paragraph the second subitem 2.4.3 of the word "the reflected credit institution on the corresponding balance sheet accounts" shall be replaced with words "specified in the agreement, taking into account the revaluation increasing (reducing) the cost of the placed money (except for the revaluation increasing (reducing) the cost of the financial assets estimated at fair value through profit or loss or through other comprehensive income concerning which requirements for forming of reserve of possible losses according to the Provision of the Bank of Russia of June 28, 2017 No. 590-P and the Provision of the Bank of Russia of October 23, 2017 No. 611-P) extend";

in the subitem 2.4.3.3 figures" (50621 - 50620), 50705, 50706, 50707, 50708, 50718 (50721 - 50720), 601A" to replace with figures "(50621 - 50620), 50670, 50671, 50705, 50706, 50707, 50708, 50718 (50721 - 50720), 50770, 50771, 601A (except for 60107)", shall be replaced with words the words "less" "taking into account";

in the paragraph the second subitem 2.4.4 of the word "the reflected credit institution on the corresponding balance sheet accounts" shall be replaced with words "specified in the agreement, taking into account the revaluation increasing (reducing) the cost of the placed money (except for the revaluation increasing (reducing) the cost of the financial assets estimated at fair value through profit or loss or through other comprehensive income concerning which requirements for forming of reserve of possible losses according to the Provision of the Bank of Russia of June 28, 2017 No. 590-P and the Provision of the Bank of Russia of October 23, 2017 No. 611-P) extend";

in subitem 2.4.4.3:

figure in paragraph one "50307, 50308, 50310, 50311" to replace with figures "50403, 50404, 50406, 50407";

in the paragraph the second shall be replaced with words the words "less" "taking into account".

1.2. In Item 3:

in subitem 3.1.6:

figure in paragraph three "61304," and figures "70605," to exclude 61301,;

figure in paragraph four "61403," and figures "70610," to exclude 61401,;

the fifth to declare the paragraph invalid;

in subitem 3.1.7:

figure in paragraph three "70705," to exclude;

figure in paragraph four "70710," to exclude;

in subitem 3.1.8:

the fifth subitem 3.1.8.6 to state the paragraph in the following edition:

"Д - the complete size of the subordinated credit (the deposit, loan, bonded loan) calculated according to subitem 3.1.8.7 of this Item taking into account the features established by the paragraph the second subitem 3.1.8.5 of this Item;";

in subitem 3.1.8.7:

state paragraph two in the following edition:

"The subordinated credits (deposits, loans, bonded loans) are included credit institution of sources of the supplementary capital based on these balance sheet accounts No. No. 20313, of 20314, of 31309, of 31409, of 31509, of 31609, of 41107, of 41207, of 41307, of 41407, of 41507, of 41607, of 41707, of 41807, of 41907, of 42007, of 42107, of 42207, of 42507, of 42807, of 42907, of 43007, of 43107, of 43207, of 43307, of 43407, of 43507, of 43607, of 43707, of 43807, of 43907, of 44007, of 47426, of 52006, of these other balance sheet accounts, and also data of the off-balance account No. 91314 in the amount specified in the agreement of the subordinated tool (if under the agreement of the subordinated tool foreign currency cash is attracted by credit institution, the subordinated credits join in rubles at the foreign exchange rate established by the Bank of Russia for settlement date of own means (capital) of credit institution).";

add with paragraphs of the following content:

"The size of the subordinated tool on which there is discharge or exchange (converting) of requirements of creditors is determined by credit institution proceeding from the amount of principal debt specified in the agreement of the subordinated tool, unpaid interests, and also financial sanctions for non-execution of obligations on it.

In case of discharge of the subordinated tool expressed in foreign currency, the foreign exchange rate is determined for date of placement on the official site of the Bank of Russia of information on emergence of the bases established in paragraph eleven or the twelfth subitem 3.1.8.1.2 of this Item. In case of implementation of exchange or converting of the subordinated tool expressed in foreign currency for the purpose of determination of its cost by credit institution in case of its entering into payment of shares, the price (market value) of which is established in rubles, the foreign exchange rate is determined for date of entering of such subordinated tool into payment of shares.";

in the paragraph the second the subitem of 3.2.1 figures "507" shall be replaced with words 506, "506 (except for 50620, 50621, 50670, 50671), 507" (except for 50720, 50721, 50770, 50771)", shall be replaced with words the words "less" "taking into account";

in the paragraph the second subitem 3.2.3 of the word "the reflected credit institution on the corresponding balance sheet accounts" shall be replaced with words "specified in the agreement, taking into account the revaluation increasing (reducing) the cost of the placed money (except for the revaluation increasing (reducing) the cost of the financial assets estimated at fair value through profit or loss or through other comprehensive income concerning which requirements for forming of reserve of possible losses according to the Provision of the Bank of Russia of June 28, 2017 No. 590-P and the Provision of the Bank of Russia of October 23, 2017 No. 611-P) extend";

in the subitem 3.2.3.3 figures" (50621 - 50620), 50705, 50706, 50707, 50708, 50718 (50721 - 50720), 601A" shall be replaced with words "(50621 - 50620), 50670, 50671, 50705, 50706, 50707, 50708, 50718 (50721 - 50720), 50770, 50771, 601A (except for 60107)", shall be replaced with words the words "less" "taking into account";

in the paragraph the second subitem 3.2.4 of the word "the reflected credit institution on the corresponding balance sheet accounts" shall be replaced with words "specified in the agreement, taking into account the revaluation increasing (reducing) the cost of the placed money (except for the revaluation increasing (reducing) the cost of the financial assets estimated at fair value through profit or loss or through other comprehensive income concerning which requirements for forming of reserve of possible losses according to the Provision of the Bank of Russia of June 28, 2017 No. 590-P and the Provision of the Bank of Russia of October 23, 2017 No. 611-P) extend";

in subitem 3.2.4.3:

figure in paragraph one "50307, 50308, 50310, 50311" to replace with figures "50403, 50404, 50406, 50407";

in the paragraph the second shall be replaced with words the words "less" "taking into account".

1.3. In item 4:

in subitem 4.1 of the word "No. No. 474A (except accounts 47402, 47408, 47423, 47427), 603A (except balance sheet accounts No. No. 60312, of 60314, of 60315, of 60323, of 60337, of 60339, of 60341, of 60343), less" shall be replaced with words "No. No. 47404, of 47406, of 47410, of 47413, of 47415, of 47417, of 47420, of 47421, of 47431, of 47443, of 47502, 603A (except balance sheet accounts No. No. 60312, of 60314, of 60315, of 60323, of 60337, of 60339, of 60341, of 60343, of 60351, taking into account";

in subitem 4.2.2:

in paragraphs three, the fourth, sixth and eighth shall be replaced with words the words "less" "taking into account";

word in paragraph seven "subitems 3.2.1 - 3.2.4" shall be replaced with words "subitems 3.2.1 - 3.2.6".

1.4. To declare subitem 7.2 of Item 7 invalid.

1.5. In paragraph one of subitem 8.1 of Item 8 of the word "taking into account the restriction to the size of the supplementary capital set for January 1, 2014 when calculating the size of own means (capital) used for the purpose of, specified in paragraph three of Item 5 of this provision" to exclude.

1.6. To declare paragraph two of Item 9 invalid.

2. This Instruction is subject to official publication and becomes effective since January 1, 2019.

Action of the paragraph of the eleventh subitem 1.1 of Item of 1 this Instruction does not extend to the loans added, but not obtained until reclassification, other asset from the I-III in IV and V quality categories interest incomes according to the agreements signed till September 29, 2018.

 

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