Bank of Russia approves RegTech and SupTech roadmap

The Bank of Russia has approved a RegTech and SupTech roadmap to ensure effective and high-tech regulation and supervision in the country. The roadmap was designed to: determine the goals and objectives of SupTech, outline key activities to achieve them, identify the main areas of activity on the side of market participants within the RegTech framework, prepare recommendations on a system for supervisory stress testing of the banking sector and implement an automated solution for calculating stress tests carried out by the Bank of Russia. In addition, the roadmap also includes the development and implementation of an information system for validating and supervising the use of credit risk assessment models as well as a new algorithm-based system for analyzing retail loan portfolios. It is expected that the implementation of the roadmap will not only reduce the regulatory burden on financial institutions and improve the quality of the Bank of Russia’s activities in the field of control and supervision but also optimize compliance processes with regulatory requirements by financial market participants.