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It is registered

Ministry of Justice

Russian Federation

On July 12, 2017 No. 47384

PROVISION OF CENTRAL BANK OF THE RUSSIAN FEDERATION

of June 28, 2017 No. 590-P

About procedure for forming by credit institutions of reserves on possible losses according to loans, the loan and equated to it debt

(as amended on 18-08-2021)

This Provision based on Articles 62, 69, 72 Federal Laws 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, the Art. 2661, the Art. 2669) (further - the Federal Law "About the Central Bank Russian Federation (Bank of Russia)"), article 24 of the Federal law "About Banks and Banking Activity" (in edition of the Federal Law of February 3, 1996 No. 17-FZ) (Sheets of the Congress of People's Deputies of RSFSR and the Supreme Council of RSFSR, 1990, No. 27, Art. 357; Russian Federation Code, 1996, No. 6, Art. 492; 1998, No. 31, Art. 3829; 1999, No. 28, Art. 3459, Art. 3469; 2001, No. 26, Art. 2586; No. 33, Art. 3424; 2002, No. 12, Art. 1093; 2003, No. 27, Art. 2700; No. 50, Art. 4855; No. 52, Art. 5033, Art. 5037; 2004, No. 27, Art. 2711; No. 31, Art. 3233; 2005, No. 1, Art. 18, Art. 45; No. 30, Art. 3117; 2006, No. 6, Art. 636; No. 19, Art. 2061; No. 31, Art. 3439; No. 52, Art. 5497; 2007, No. 1, Art. 9; No. 22, Art. 2563; No. 31, Art. 4011; No. 41, Art. 4845; No. 45, Art. 5425; No. 50, Art. 6238; 2008, No. 10, Art. 895; 2009, No. 1, Art. 23; No. 9, Art. 1043; No. 18, Art. 2153; No. 23, Art. 2776; No. 30, Art. 3739; No. 48, Art. 5731; No. 52, Art. 6428; 2010, No. 8, Art. 775; No. 27, Art. 3432; No. 30, Art. 4012; No. 31, Art. 4193; No. 47, Art. 6028; 2011, No. 7, Art. 905; No. 27, Art. 3873, Art. 3880; No. 29, Art. 4291; No. 48, Art. 6730; No. 49, Art. 7069; No. 50, Art. 7351; 2012, No. 27, Art. 3588; No. 31, Art. 4333; No. 50, Art. 6954; No. 53, Art. 7605, Art. 7607; 2013, No. 11, Art. 1076; No. 19, Art. 2317, Art. 2329; No. 26, Art. 3207; No. 27, Art. 3438, Art. 3477; No. 30, Art. 4084; No. 40, Art. 5036; No. 49, Art. 6336; No. 51, Art. 6683, Art. 6699; 2014, No. 6, Art. 563; No. 19, Art. 2311; No. 26, Art. 3379, Art. 3395; No. 30, Art. 4219; No. 40, Art. 5317, Art. 5320; No. 45, Art. 6144, Art. 6154; No. 49, Art. 6912; No. 52, Art. 7543; 2015, No. 1, Art. 37; No. 17, Art. 2473; No. 27, Art. 3947, Art. 3950; No. 29, Art. 4355, Art. 4357, Art. 4385; No. 51, Art. 7243; 2016, No. 1, Art. 23; No. 15, Art. 2050; No. 26, Art. 3860; No. 27, Art. 4294, Art. 4295; 2017, No. 14, Art. 2000; No. 18, Art. 2661, Art. 2669; No. 25, the Art. 3596) (further - the Federal Law "About Banks and Banking Activity") 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 May 29, 2017 No. 12) establish procedure for forming by credit institutions of reserves on possible losses according to loans, the loan and equated to it debt (further - loans), to which the monetary claims and requirements following from transactions with financial instruments which list is given in appendix 1 to this Provision, and also feature of implementation by the Bank of Russia of supervision of observance by credit institutions of procedure for forming of reserves on possible losses according to loans belong.

Chapter 1. General provisions

1.1. Credit institutions shall create reserves on possible losses according to loans (further - reserve) according to the procedure established by this Provision.

1.2. Classification (reclassification) of loans and forming (refining of the size) of reserve are performed based on the following principles:

compliance of the actual actions for classification of loans and forming of reserve to requirements of this provision and internal documents of credit institution concerning classification of loans and the forming of reserve accepted by authorized body (authorized bodies) of credit institution (further - internal documents);

the complex and objective analysis of all information relating to the sphere of classification of loans and forming of reserves;

timeliness of classification (reclassification) of the loan and (or) forming (amendments of the size) of reserve and reliability of reflection of changes of the size of reserve in accounting and reporting.

1.3. The reserve is created by credit institution in case of impairment of the loan (loans), that is in case of loss by the loan of cost owing to non-execution or improper execution by the borrower of obligations according to the loan to credit institution or existence of real threat of such non-execution (improper execution) (further - credit risk according to the loan).

1.4. Ceased to be valid according to the Instruction of the Central bank of the Russian Federation of 27.11.2018 No. 4986-U

1.5. The reserve is created according to the specific loan or on portfolio of uniform loans, that is on group of the loans with similar characteristics of credit risk conforming to the requirements established by this Provision, and isolated for the purpose of forming of reserve (further - portfolio of uniform loans) in connection with the credit risk caused by activities of the specific borrower or group of borrowers, provided by which loans are included in portfolio of uniform loans.

1.6. When forming reserve credit institutions determine according to procedure, stipulated in Item 1.7 and Chapter of 3 this provision, the size of settlement reserve, that is the reserve reflecting the size of losses of credit institution according to the loan which shall be acknowledged in case of observance of the evaluation procedure of factors of credit risk provided by this Provision according to the loan without providing according to the loan.

In the presence of the providing according to the loan provided by Chapter 6 of this provision, the size of the created reserve is determined according to the procedure, established by the specified Chapter.

In the absence of the providing according to the loan provided by Chapter 6 of this provision, the reserve is created in the amount of settlement reserve.

Forming of portfolios of uniform loans, determination of the size of reserve on portfolios of uniform loans are performed according to the procedure established by Chapter 5 of this provision.

1.7. For the purpose of determination of the size of settlement reserve in connection with action of factors of credit risk of the loan (except for the loans grouped in portfolio of uniform loans) are classified based on professional judgment in one of five quality categories:

The I (highest) quality category (standard loans) - lack of credit risk (the probability of financial losses owing to non-execution or improper execution by the borrower of obligations according to the loan is equal to zero);

The II quality category (non-standard loans) - moderate credit risk (the probability of financial losses owing to non-execution or improper execution by the borrower of obligations according to the loan causes its impairment at the rate from 1 percent to 20 percent);

III quality category (doubtful loans) - significant credit risk (the probability of financial losses owing to non-execution or improper execution by the borrower of obligations according to the loan causes its impairment at the rate from 21 percent to 50 percent);

The IV quality category (problem loans) - high credit risk (the probability of financial losses owing to non-execution or improper execution by the borrower of obligations according to the loan causes its impairment at the rate from 51 percent to 100 percent);

The V (lowest) quality category (hopeless loans) - is absent probability of return of the loan owing to inability or refusal of the borrower to fulfill obligations on the loan that causes complete (in the amount of 100 percent) impairment of the loan.

The loans carried to the II-V quality categories are depreciated.

The credit institution creates reserves on portfolios of uniform loans according to the risk assessment technique applied by it on the corresponding portfolios of uniform loans. The credit institution distributes the built portfolios of uniform loans on the following quality categories:

The I quality category - portfolios of uniform loans with size of the created reserve in the amount of, equal to zero (0) (losses on portfolio of uniform loans are absent);

The II quality category - portfolios of uniform loans with size of created reserve no more than 3 percent of aggregate book value of the loans united in portfolio;

III quality category - portfolios of uniform loans with size of created reserve over 3 and to 20 percent inclusive aggregate book value of the loans united in portfolio;

The IV quality category - portfolios of uniform loans with size of created reserve over 20 and to 50 percent inclusive aggregate book value of the loans united in portfolio;

The V quality category - portfolios of uniform loans with size of created reserve over 50 percent of aggregate book value of the loans united in portfolio.

1.8. The reserve is created concerning the requirements of credit institution to the borrower according to the loan reflected in the corresponding balance sheet accounts (further - principal debt). The amount of principal debt does not join account balances on accounting of accrued expenses and other incomes on financial asset, the added percent on the loan, costs according to the transaction (further - percent on the loan), the adjustments and revaluation increasing or reducing the cost of financial asset, creating according to regulations of the Bank of Russia about procedure for financial accounting in credit institutions book value of financial asset.

1.9. The reserve is created in currency of the Russian Federation irrespective of loan currency.

1.10. Requirements of this provision do not extend on:

paragraph two of ceased to be valid;

the financial instruments which are elements of calculation base according to the Provision of the Bank of Russia of October 23, 2017 No. 611-P "About procedure for forming by credit institutions of reserves on possible losses", the registered Ministry of Justice of the Russian Federation on March 15, 2018 No. 50381, on December 19, 2018 No. 53054;

requirements to the Bank of Russia;

requirements of the credit institutions performing the functions of the central partner corresponding to conditions of code 8846 of appendix 1 to the Instruction of the Bank of Russia of November 29, 2019 No. 199-I "About obligatory standard rates and allowances to capital adequacy ratios of banks with the universal license" registered by the Ministry of Justice of the Russian Federation on December 27, 2019 No. 57008, on March 31, 2020 No. 57913, on September 11, 2020 No. 59770 (further - the Instruction of the Bank of Russia No. 199-I), arising on the transactions connected with implementation of clearing activities and execution of functions of the central partner.

Chapter 2. General requirements according to credit risks according to loans

2.1. Assessment of credit risk according to the loan and portfolios of uniform loans is performed on permanent basis since the moment of issue of the loan. Classification and assessment of the loan (portfolios of uniform loans), determination (refining of the size) of reserve by the loan and portfolios of uniform loans are made with the frequency established by Chapters 3 and 5 of this provision.

2.2. Assessment of the loan and determination of the size of settlement reserve and reserve are performed by credit institutions independently on the basis of professional judgment, except as specified, when assessment of the loan and (or) determination of the size of reserve is made based on assessment of the Bank of Russia according to article 72 of the Federal law "About the Central Bank Russian Federation (Bank of Russia)" and with Chapter 7 of this provision.

2.3. Internal documents shall conform to requirements of this provision and other regulations concerning credit policy of credit institutions and (or) methods of its realization, and also to contain complete list of the essential factors used by credit institution in case of classification of loans according to this Provision. The structure of internal documents is determined by credit institution independently taking into account requirements of this provision.

The credit institution reflects in internal documents:

the paragraph third ceased to be valid according to the Instruction of the Central bank of the Russian Federation of 18.07.2019 No. 5211-U

evaluation procedure of loans, including criteria for evaluation of loans, procedure for documentary registration and confirmation of assessment of loans;

procedure for acceptance and execution of decisions on forming of reserve;

procedure for decision making about recognition of debt on loans of hopeless. The debt on loans is recognized hopeless and is subject to write-off by credit institutions according to the procedure, established by Chapter 8 of this provision;

the description of rules (methods, procedures) used for determination of reality of activities of the borrower - the legal entity in the sphere of production, performance of works and rendering services, including the list of the circumstances testimonial of possible absence at the borrower - the legal entity of real activities or about its implementation in insignificant amounts in terms of money, not comparable to loan amount (sets of the loans allowed this borrower), the list of the main used sources of information on the matter characterizing the data necessary for identification of such borrowers, powers of the employees of credit institution participating in carrying out the specified work, procedure for decision making about reality of activities of the borrower (about recognition of activities of the borrower real). In case of assessment of activities of the borrower - the legal entity as real credit institutions shall recognize that results of these activities can be realized (are sold) in the market, thus that payment from consumers (buyers) is performed by them not due to systematic and essential use of the money and (or) other property provided to them by credit institution - the creditor directly or indirectly (through the third parties) with acceptance on credit institution - the creditor of credit risks. The minimum list of circumstances, each of which witnesses about possible absence at the borrower - the legal entity of real activities or about its implementation in insignificant amounts in terms of money, not comparable to loan amount (sets of the loans allowed this borrower) which joins in internal documents, contains in appendix 4 to this Provision. The credit institution has the right to provide in internal documents other additional circumstances testimonial of possible absence at the borrower - the legal entity of real activities or about its implementation in insignificant amounts in terms of money, not comparable to loan amount (sets of the loans allowed this borrower);

the description of rules (methods, procedures) used in case of assessment of financial position of the borrower, the list of the main used sources of information on the matter, circle of the data necessary for assessment of financial position of the borrower, power of the employees of credit institution participating in carrying out the specified assessment and also procedure for decision making about assessment of financial position of the borrower;

criteria of materiality of turnovers of money according to the bank accounts of the borrower opened in credit institution;

criteria of materiality of the amounts and terms of the current card-index of unpaid settlement documents to bank accounts of the borrower, debt to the federal budget, budgets of subjects of the Russian Federation, local budgets and off-budget funds, overdue monetary commitments before the Bank of Russia on borrowed funds, procedure of the analysis of origins of the current card-index of unpaid settlement documents to bank accounts of the borrower, debt to the specified budgets, off-budget funds and the Bank of Russia for the purpose of assessment of financial position of the borrower - the legal entity according to subitem 3.4.1 of Item 3.4 of this provision;

criteria for evaluation of information provided by the borrower (including its completeness, relevance, reliability), and also measures for receipt of information on the borrower, including about its financial position, condition of its productive and financial and economic activity, the purpose on which loan is allowed the borrower and is used by it, the planned sources of execution by the borrower of obligations according to the loan and about providing according to the loan;

procedure of control of correctness of assessment and determination of the size of reserves according to the loans specified in Item 3.6 of this provision;

criteria of materiality for the borrower of its overdue receivables for the purpose of application of the paragraph of the eighth Item 3.6 of this provision;

procedure for creation and further maintaining file of the borrower;

procedure for documentary registration and creation of professional judgment;

the procedure and frequency of determination of fair value of pledge, that is its such price at which the pledger if it would be seller of the property provided as a deposit, having the complete information about property value and not obliged it to sell, would agree it to sell, and the buyer having the complete information about the cost of the specified property and who is not obliged it to acquire, would agree it to acquire in reasonably short time which is not exceeding 365 calendar days;

procedure and frequency of assessment of liquidity of pledge, and also procedure for determination (refining) for the size of reserve taking into account providing according to the loan;

evaluation procedure of credit risk on portfolio of uniform loans;

procedure and frequency of forming (refining of the size) of reserve;

procedure for use by credit institution of other essential factors in case of determination of quality category of loans and (or) procedure for decision making about their use;

the system of assessment of credit risk according to loans allowing to classify loans (portfolios of uniform loans) by the quality categories provided in Item 1.7 of this provision, including containing more disaggregated assessment procedures of quality of loans and forming of reserve than it is provided by this Provision;

system of assessment of credit risk on the credits and loans granted within the program implementation "Factory of project financing" approved by the order of the Government of the Russian Federation of February 15, 2018 No. 158 "About the Factory of Project Financing program (The Russian Federation Code, 2018, No. 9, Art. 1390; No. 24, Art. 3538; 2019, No. 26, the Art. 3426) (further - the Factory of Project Financing program), within the project financing determined by Item 2.14 of the Provision of the Bank of Russia of August 6, 2015 No. 483-P "About procedure of payments of size of credit risk on the basis of internal ratings", registered by the Ministry of Justice of the Russian Federation on September 25, 2015 No. 38996, on December 22, 2015 No. 40193, on June 10, 2019 No. 54896, on March 31, 2020 No. 57915, on April 29, 2020 No. 58242 (further - the Provision of the Bank of Russia No. 483-P), according to the criteria established by the Section I of appendix 2 to the Provision of the Bank of Russia No. 483-P (further - the mechanism of project financing);

system of assessment of credit risk according to the loans allowed the borrowers builders using escrow accounts according to the Federal Law of December 30, 2004 No. 214-FZ "About participation in shared-equity construction of apartment houses and other real estate objects and about modification of some legal acts of the Russian Federation" (The Russian Federation Code, 2005, No. 1, Art. 40; 2006, No. 30, Art. 3287; No. 43, Art. 4412; 2008, No. 30, Art. 3616; 2009, No. 29, Art. 3584; 2010, No. 25, Art. 3070; 2011, No. 49, Art. 7015, Art. 7040; 2012, No. 29, Art. 3998; No. 53, Art. 7619, Art. 7643; 2013, No. 30, Art. 4074; No. 52, Art. 6979; 2014, No. 26, Art. 3377; No. 30, Art. 4225; 2015, No. 29, Art. 4362; 2016, No. 18, Art. 2515; No. 27, Art. 4237, Art. 4294; 2017, No. 27, Art. 3938; No. 31, Art. 4767, Art. 4816; 2018, No. 1, Art. 90; No. 28, Art. 4139; No. 31, Art. 4861; No. 53, Art. 8404; No. 26, the Art. 3317) (further - the Federal Law of December 30, 2004 No. 214-FZ) (further - the loans allowed the borrowers builders using escrow accounts), including cases when the criterion of creditworthness contains several conditions for determination of level of creditworthness of the borrower builder using escrow accounts;

system of assessment of credit risk according to the loans allowed the subjects of small and medium business determined by Articles 3, 4 and 4.1 Federal Laws of July 24, 2007 No. 209-FZ "About development of small and medium business in the Russian Federation" (The Russian Federation Code, 2007, No. 31, Art. 4006; 2020, No. 14, Art. 2013; No. 44, to the Art. 6891) (further respectively - the Federal Law of July 24, 2007 No. 209-FZ, subjects of small and medium business) grouped in portfolios of uniform loans on which the risk assessment is performed on the basis of intra bank estimates of creditworthness of the borrower without use of the official reporting and evaluating financial position according to requirements of Chapter 3 this provision (further - intra bank estimates of creditworthness). The credit institution has the right to provide in internal documents possibility of assessment of credit risk according to the loans provided to the subjects of small and medium business excluded from the unified register of subjects of small and medium business according to article 4.1 of the Federal Law of July 24, 2007 No. 209-FZ using the approaches provided by this Provision for subjects of small and medium business within year from the date of their exception of the unified register of subjects of small and medium business;

other essential factors which are not contradicting this Provision which can influence classification of loans according to Item 3.9 of this provision;

other provisions.

2.4. The credit institution opens information on credit policy (rules, procedures, techniques) which is applied in case of classification of loans and forming of reserve by the corresponding types and types of loans, including industry, territorial and other aspects, and also on portfolios of uniform loans, as a part of the reporting represented according to requirements of regulations of the Bank of Russia.

Chapter 3. Assessment of credit risk according to the issued loan

3.1. Assessment of credit risk according to each issued loan (professional judgment) shall be carried out by credit institution on permanent basis.

3.1.1. Professional judgment is taken out by results of the complex and objective analysis of activities of the borrower taking into account its financial position, service quality by the borrower of debt according to the loan, and also all available credit institution of information on the borrower, including about any risks of the borrower, including data on external obligations of the borrower, on functioning of the market (markets) in which, (which) the borrower works. Professional judgment of credit institution shall contain:

information on the level of credit risk on the loan;

information on the analysis by results of which professional judgment is taken out;

the conclusion about results of assessment of financial position of the borrower, including reasons for implementation by the borrower - the legal entity of real activities;

conclusion about results of quality evaluation of debt servicing on the loan;

information on availability of other essential factors considered in case of classification of the loan or unaccounted with indication of the reasons for which they were not considered by credit institution;

calculation of reserve;

other essential information.

If the credit institution will make the decision on not increase in actually created reserve according to loans of physical persons or individual entrepreneurs, and also loans of legal entities, financial position and (or) service quality of debt, and (or) quality of providing according to loans of which worsened owing to the emergency situation of regional, interregional and federal nature determined according to the Federal Law of December 21, 1994 No. 68-FZ "About protection of the population and the territories against emergency situations of natural and technogenic nature" (The Russian Federation Code, 1994, No. 35, Art. 3648; 2002, No. 44, Art. 4294; 2004, No. 35, Art. 3607; 2006, No. 50, Art. 5284; No. 52, Art. 5498; 2007, No. 45, Art. 5418; 2009, No. 1, Art. 17; No. 19, Art. 2274; No. 48, Art. 5717; 2010, No. 21, Art. 2529; No. 31, Art. 4192; 2011, No. 1, Art. 24, Art. 54; 2012, No. 14, Art. 1549; 2013, No. 7, Art. 610; No. 27, Art. 3450, Art. 3477; No. 52, Art. 6969; 2014, No. 30, Art. 4272; No. 42, Art. 5615; 2015, No. 10, Art. 1408; No. 18, Art. 2622; No. 48, Art. 6723; 2016, No. 1, Art. 68; No. 7, Art. 919; No. 26, of the Art. 3887) and the regulatory legal acts adopted according to it (further - emergency situation), professional judgment of credit institution shall contain information on date of emergence of emergency situation and the basis of its determination, and also the conclusion about the reasons according to which the credit institution came to conclusion that the financial position and (or) service quality of debt, and (or) quality of providing according to loans of physical person, individual entrepreneur or legal entity worsened owing to emergence of emergency situation.

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