The Bank of Russia released a draft proposal on Sept. 18 that would introduce two prudential ratios, N31 and N32, to measure crypto-related exposure in the banking sector. N31 would be calculated against the own funds of an individual credit institution, while N32 would be based on the consolidated capital of a banking group. The scope would cover direct investments, derivatives linked to crypto-asset prices, and loans, bonds, and repo transactions whose settlement or value depends on crypto assets. The draft also sets out how custody exposure would be treated. Client custodial assets would be included if a bank or a digital custodian within the group bears the loss. Assets for which the institution does not bear losses would not be included, but they would still carry a 50% risk weight. Positions held on a bank’s own account, as well as client positions for which the bank is liable, would be assigned a 1250% risk weight. The draft is scheduled for formal release in the fourth quarter of 2026, would take effect 10 days after publication, and banks are expected to begin reporting N31 and N32 figures from January 2027.
According to ChainCatcher, the Bank of Russia released a draft proposal on Sept. 18 to introduce two ratios, N31 and N32, for measuring crypto-related exposure.
Scope of the proposed ratios
N31 would be calculated against the own funds of an individual credit institution, while N32 would be measured against the consolidated capital of a banking group.
The draft would include direct investments, derivatives linked to crypto-asset prices, and loans, bonds, and repo transactions whose settlement or value depends on crypto assets.
Client custodial assets would be included if a bank or a digital custodian within the banking group bears the loss. Assets for which the institution does not bear losses would not be included, though they would still be subject to a 50% risk weight.
Risk weights and timeline
Positions on a bank’s own account and client positions for which the bank bears responsibility would be assigned a 1250% risk weight.
The draft is scheduled for formal release in the fourth quarter of 2026. It would take effect 10 days after publication, and banks are expected to start reporting N31 and N32 figures from January 2027.
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