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Russian banks to resume disclosing financial statements in simplified format

Despite the plan to switch to minimized reporting beginning in 2023, credit institutions will continue to withhold sensitive information that could expose them to sanctions risks

MOSCOW, January 1. /TASS/. Russian banks are expected to resume disclosing their financial statements, albeit in a shortened form, beginning in 2023.

The Bank of Russia made the decision to gradually reveal financial statements.

Following the start of the special operation in Ukraine, the top Russian banks faced massive penalties from the West. In light of this, the Bank of Russia decided in March 2022 to temporarily prohibit banks from publishing their financial statements.

Despite the plan to switch to minimized reporting beginning in 2023, credit institutions will continue to withhold sensitive information that could expose them to sanctions risks.

In addition, starting from 2023, banks will be able to avoid applying capital adequacy limits, with their subsequent gradual restoration over five years. According to the Bank of Russia, the measure will allow banks to recognize losses on problem assets, the regulator pointed out.

At the same time, regardless of compliance with the rules, banks will be entitled to give remuneration to their management in order to motivate them to promptly restore the credit institution's financial stability.

According to the Bank of Russia’s estimations, the impact of this measure on the potential for lending in Russia could be about 15 trillion rubles ($204.4 bln) within five years of the preferential regime.