Bank of Russia approves new parameters of ICL fee and cancels maximum aggregate limit (15.12.2023)

The Bank of Russia Board of Directors has approved new parameters of the irrevocable credit line (ICL) that is opened for credit institutions to comply with the requirements of the liquidity coverage ratio (LCR) because the relaxations relating to compliance with this ratio will be rolled back for systemically important credit institutions.

Starting from 1 March 2023, a differentiated fee will be charged for the right to use the ICL.

The part of the maximum possible limit of the ICL that allows the replenishment of highly liquid assets necessary for increasing the actual LCR from 80% to 100% will be paid for at the rate of 0.1% per annum. The remaining part of the maximum possible limit under an ICL contract will be paid for at the rate of 1.5% per annum.

The Bank of Russia will establish the fee calculation procedure in its order.

The differentiation of the fee for the right to use the ICL will encourage systemically important banks to independently keep the LCR at the level of 80%, which has been set as a target starting from 1 January 2026.

Also, the maximum aggregate limit relating to irrevocable credit lines has been cancelled.