In a joint action Bankir.Ru, Association of Regional Banks of Russia and the magazine paper machine. Banks and business world is “one of the participants noted that the procedure for creating reserves for possible loan losses by the provisions of the CBR on March 26, 2004 № 254-P” On the order of formation of lenders of reserves for possible losses on loans to loan and similar debt “is now extremely difficult, time consuming and has a high degree of subjectivity in the decision.

Representatives of the Bank of Russia, commented on this situation:

«In accordance with the general approach set out in the Regulation № 254-P, evaluation procedures, credit risk on loans are determined by the credit institution itself and fastened in the internal documents of the credit policy. In our understanding, the complexity of these procedures is not due to regulatory requirements, but depends on the quality of internal documents of the credit institution. Regarding the subjectivity of the decisions on the assessment of credit risk believe that this problem is largely due to the quality of internal documents on the credit policy ».

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