Bank of Russia Bolsters Lenders as FX Debt Payments Loom
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The Bank of Russia took steps to stabilize the banking system as the ruble collapse makes it more expensive for lenders to meet foreign-currency debt obligations.
The measures announced today include allowing banks to use a third-quarter exchange rate -- before a plunge in oil prices accelerated the ruble’s decline -- to value risk-weighted assets, according to a statement on the central bank’s website. It didn’t specify the rate or say how long banks would be allowed to ignore market values in their accounting, meaning they essentially hold off taking losses.