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Saturday, February 23, 2019

Bank of Russia publishes new action plan for reducing reliance on ratings agencies

The Central Bank of Russia recently published a new guide to measures it is taking to minimize reliance on credit ratings agencies.

The "Action Plan of the Bank of Russia to Implement Financial Stability Board Principles for Reducing Reliance on Credit Rating Agencies Ratings" was published in accordance with the FSB's report to the G20 meeting of finance ministers and central bank governors in Mexico City in November.

The November report set out a roadmap for accelerating implementation of the FSB's principles that were outlined in an October 2010 document stating that "standard setters and regulators should incentivize a transition to a reduced reliance on CRA ratings over a reasonable timeframe extending into the medium term, taking into account the need for market participants to build up their own risk management capabilities to replace reliance on CRA ratings, but with clear milestones."