14.05.2018
In the Russian financial sector, despite the presence in it of a significant number of non-credit financial institutions, there was still a significant dominance of the assets of credit institutions, according to the report of the Central Bank of the Russian Federation for 2017, published on the website of the regulator the other day.
At the end of 2017, the ratio of banking sector assets to GDP amounted to more than 90%, while the ratio of assets of other major financial market participants to GDP in the aggregate slightly exceeded 10%. In 2017, the population and business, as before, preferred a comprehensive banking service. Nevertheless, the demand for the services of non-credit financial institutions has increased.
Credit organizations
In 2017, the banking sector functioned in a gradual recovery economic activity: a number of industries grew at a faster pace, the real wage there are signs of a recovery in demand. The situation in the banking sector has also stabilized. The capital stock was assessed as sufficient for a further increase in lending and development of the banking business.
On financial indicators The banking sector was favorably affected by a gradual decrease in the key rate and the cost of funding. In general, the quality has stabilized loan portfolio. During the year, overdue debt on loans changed insignificantly and remained at a consistently low level. At the same time, adequate provisions were created for bad loans.
The dynamics of reserves was influenced by additional formation of reserves for possible losses on problem assets banking groups whose parent organizations are undergoing a financial rehabilitation procedure using the funds of the Banking Sector Consolidation Fund.
license revocations
The relative indicators of the banking sector were influenced to a certain extent by the dynamics of the ruble exchange rate, and the revocation of the licenses of a number of credit institutions also had an effect. Therefore, in order to more correctly reflect the actual dynamics of the main indicators of the banking sector, this section provides data excluding the influence exchange rate for credit institutions operating as of January 1, 2018 (including banks reorganized during the year).
the population trusts
A positive feature of 2017 was the continued influx of household savings into banks, which testified to the continued confidence of the population in banks. In 2017, banking sector assets increased by 9.0% to RUB 85.2 trillion (in 2016, an increase of 3.4%). Due to a less significant increase in assets in nominal terms compared to the dynamics GDP ratio banking sector assets to GDP for the year changed from 92.9 to 92.6%.
The volume of total assets of systemically important credit institutions (SICIs) in 2017 increased by 10.6% to RUB 55.3 trillion, including due to the inclusion of PJSC CREDIT BANK OF MOSCOW in their list (excluding this credit institution, the volume total assets increased by 6.8% in 2017.
Structure of liabilities of credit institutions. Banking sector funding remained balanced in 2017. At the same time, household deposits took the first place in terms of their importance as a source of funding: their share in banks' liabilities exceeded the share of enterprises' funds (30.5 and 29.2%, respectively, as of January 1, 2018). Volume of deposits individuals 2 increased by 10.7% in 2017 (by 11.8% in 2016) to RUB 26.0 trillion.
share PJSC Sberbank in the market of household deposits in 2017 decreased slightly - from 46.6 to 46.1%. The total volume of deposits and funds of organizations on accounts in 2017 increased by 4.8%; their volume as of January 1, 2018 amounted to 24.8 trillion rubles. The share of the foreign exchange component decreased in 2017 for deposits of individuals from 23.7% to 20.6%, for deposits and funds in accounts of organizations - from 40.5% to 36.7%.
The volume of deposits and funds of organizations on accounts in SZKO in 2017 increased by 5.6%, to 17.7 trillion rubles, and the volume of deposits of individuals increased by 11.6%, to 16.9 trillion rubles. Against the backdrop of a structural liquidity surplus, credit institutions' borrowings from the Bank of Russia decreased significantly (by 25.7%).
The decrease in the share of these funds in banks' liabilities from 3.4% to 2.4% indicates that banks mainly used market sources of funding. The volume of funds placed on deposits in banks Federal Treasury, increased three times in 2017, and their share in the liabilities of the banking sector increased from 0.4 to 1.2%.
Smooth reduction of the key rate The Bank of Russia contributed to the fact that the weighted average interest rate on ruble deposits of non-financial organizations for a period of more than 1 year decreased from 9.0% per annum in January to 7.5% per annum in December 2017, on ruble deposits of individuals - from 7.8 to 6.4% per annum, respectively. Liabilities of the banking sector in foreign currency in 2017 decreased by 7.1%, and their share in the total liabilities of the banking sector - up to 21.8% (26.5% as of January 1, 2017). Structure of assets of credit institutions. The total volume of loans to non-financial organizations and individuals increased by 6.2% in 2017 (it decreased by 0.8% in 2016) to RUB 42.4 trillion. The volume of such loans from SZKO increased by 8.7% to 31.4 trillion rubles. The debt on loans and other placed funds provided to non-financial organizations in the banking sector as a whole increased by 3.7% in 2017 (a decrease of 1.8% in 2016) to RUB 30.2 trillion.
The share of these loans in the assets of the banking sector in 2017 decreased from 37.6% to 35.4%. In 2017 in the lending market SMEs for the first time since 2014, there are signs of recovery. The total volume of loans issued to SMEs increased significantly in 2017 (+15.4%)
The volume of debt under bank loans SMEs increased by 1.3% and amounted to 4.2 trillion rubles as of January 1, 2018. This growth rate is due to a significant reduction in the portfolio.
corporate loans
By species economic activity the largest share was accounted for by loans to manufacturing enterprises (26.2% of the corporate loan portfolio as of January 1, 2018; 21.9% as of January 1, 2017)5. The share of loans to wholesalers and retail in 2017 decreased from 15.5% to 7.3%. Dynamics of corporate lending various kinds activity in 2017 was multidirectional. Loans to agricultural and forestry enterprises increased by 9.2% over the year. There was a significant increase in loans to enterprises engaged in the extraction of minerals (by 24.4%) and operations with real estate, rent and provision of services (by 27.3%).
At the same time, debt on loans provided construction organizations, decreased by 3.8%, wholesale and retail trade organizations- by 3.6%. The share of foreign currency loans in the total volume of loans to non-financial organizations decreased from 32.2% to 29.7% in 2017, due to the growth of ruble lending against the background of a decrease in the volume of loans in foreign currency, as well as the strengthening of the ruble. The share of the foreign exchange component decreased in loans to organizations of all types of economic activity, except for organizations involved in the production and distribution of electricity, gas and water. The largest decrease in this share was noted among enterprises engaged in the extraction of minerals (from 46.4 to 39.9%). However, they remained the largest share of foreign currency debt, given the presence of significant foreign exchange earnings. Debt on loans to individuals in 2017 increased by 13.2% (in 2016 - by 2.5%), in the banking sector as a whole - up to 12.2 trillion rubles. The retail lending segment accounts for 14.3% of banking sector assets as of January 1, 2018.
State of the economy of the Russian Federation
The amount of debt on mortgage housing loans increased by 15.7% in 2017 (by 12.1% in 2016) to RUB 5.2 trillion, which was facilitated by government subsidies of the interest rate on these loans. Loans in rubles still dominated in mortgage lending - 99.2%. In total, about 1.1 million mortgages were provided in 2017 housing loans in the amount of more than 2 trillion rubles (for 2016 - 856 thousand such loans). The weighted average interest rate on ruble loans to non-financial organizations for a period of more than 1 year in December 2017 amounted to 9.4% per annum, which is 3.1 percentage points lower than in January of the same year.
For ruble loans to individuals of the same maturity, the rate decreased from 16.2% per annum in January to 12.9% per annum in December. The weighted average interest rate on ruble mortgage housing loans decreased from 11.8% per annum in January to 9.8% per annum in December.
Briefcase valuable papers increased by 9.7% in 2017 (by 4.4% in 2016) to RUB 12.3 trillion, while its share in banking sector assets changed insignificantly and amounted to 14.5%. The main share (81%) in this portfolio was still occupied by investments in debentures. The volume of equity securities increased by 41.8%, and their share in the securities portfolio increased from 3.1% to 3.9%. During the reporting period, the securities portfolio of SZKO grew by 13.5% to 7.3 trillion rubles. In the absence of liquidity problems for banks, the volume of claims of credit institutions against the Bank of Russia (on deposits and correspondent accounts) increased by 67.6% in 2017 (by 24.2% in 2016), to RUB 4.2 trillion; the share of these claims in the assets of the banking sector increased from 3.2% to 5.0%.
Assets of credit institutions in foreign currency(in dollar terms) for 2017 decreased by 9.0%, and their share in total assets - up to 22.3% (as of January 1, 2017 - 27.8%). Claims and obligations on interbank loans. The total portfolio of interbank loans extended in 2017 increased by 10.0% (by 15.1% in 2016) to RUB 9.8 trillion; their share in the assets of the banking sector practically did not change over the year and amounted to 11.5%. Interbank loans extended to resident banks increased by 14.8%, while interbank loans extended to non-resident banks decreased by 7.7%.
The volume of attracted interbank loans increased by 10.5% (in 2016 - by 30.6%), to 9.3 trillion rubles, and their share in the liabilities of the banking sector increased slightly - up to 10.9%; Interbank loans raised from non-resident banks decreased by 21.1% over the year. I.2. Financial sector Bank of Russia Annual Report 2017 65 At the end of 2017, the Russian banking sector remained a net creditor in transactions with non-resident banks: net claims on non-residents in the interbank lending market amounted to RUB 0.8 trillion (versus RUB 0.7 trillion a year earlier) .
banks' income
Financial results and capital of the banking sector in 2017. In 2017, operating credit institutions received net profit in the amount of 789.7 billion rubles (2016 - 929.7 billion rubles). The decrease was due to a significant net additional formation of provisions for possible losses, which increased in 2017 compared to 2016 by 768.7 billion rubles, or by 38.7%. The main volume of additional formation was accounted for by a number of large banks undergoing the procedure of financial rehabilitation, including with the participation of the Bank of Russia.
The most significant article in the formation financial result banks remained net interest income, its share in the factors of profit formation amounted to 64.2% (in 2016 - 66.5%). In 2017, net interest income decreased by 2.3% to RUB 2.6 trillion. The ratio to gross interest income of banks increased from 40.9% as of January 1, 2017 to 44.8% as of January 1, 2018 due to the outpacing decline in gross interest income. Net interest income from transactions with individuals increased by RUB 65.0 billion, or 17.5%, over the year.
The mega-regulator reflects the fulfillment by the Bank of Russia of five strategic goals: ensuring price stability; ensuring the stability of the financial market; increasing the availability of financial products / services for the population and businesses; national payment system; development of technologies and support of innovations in the financial market. The section of the report devoted to the main activities of the Bank of Russia is structured for the first time in accordance with these goals. This approach will make it possible in practice to ensure public control over the efficiency of the Bank of Russia.
“2016 was the year of stabilization Russian economy and her financial sphere transition from recession to recovery growth,” said Elvira Nabiullina, Chairman of the Bank of Russia, in her address to readers. – That the recession was less deep and the recovery started faster than expected, important role played by the preservation of macroeconomic stability.
According to Elvira Nabiullina, price and financial stability is a necessary but not sufficient condition for sustainable economic growth; structural transformations. Consistently low inflation will support the transition of the Russian economy to a new model of economic growth based not only on the export of hydrocarbons, but also on domestic investment, diversifying the economy and increasing labor productivity.
That is why the Bank of Russia in 2016 continued the policy of gradually reducing inflation. Inflation slowed down against the backdrop of a recovery in economic activity, a decline in long-term interest rates. 2017 vector monetary policy will remain. The Bank of Russia expects that by the end of 2017 the inflation target of 4% will be achieved.
AT reporting year the banking sector has regained profitability and built up sufficient capital to boost lending to the economy. In order to develop competition and increase the stability of credit institutions, the Bank of Russia announced in 2016 cardinal changes in regulation - the transition to a three-level banking system. As a result of the reform, simplified regulatory requirements will be applied to small banks, and the provision of services to small businesses and individuals will become a priority for such banks.
In 2016, the Bank of Russia initiated a change in the mechanism for the financial recovery of credit institutions. These changes are aimed at increasing the transparency of the procedure and reducing the cost of financial recovery, will help increase the interest of investors in banking business, the stability of the banking system as a whole.
In the reporting year, a number of major projects on the formation of a full-fledged infrastructure of the financial market. A national reinsurance company was created, the formation of a guarantee system was completed pension savings, the infrastructure for accepting Mir national payment cards has been fully opened throughout the country.
In the field of consumer protection financial services The Bank of Russia carried out work on the introduction of automated methods for processing complaints, and two regional centers for processing complaints began to operate. In order to improve the efficiency and quality of response to complaints and appeals from citizens, the capabilities of the Bank of Russia's Internet reception and telephone hotline were significantly expanded.
The regulator attached great importance to ensuring the cyber-resilience of organizations in the financial sector. The legislation on the issues of regulation and control by the Bank of Russia of information protection in financial organizations, as well as countering fraud in the financial market, was improved. Requirements for the protection of information in the payment system of the Bank of Russia were put into effect. The mechanisms of interaction with law enforcement agencies during the investigation of cybercrime were improved.
In 2016, the Bank of Russia carried out significant internal changes: in order to increase the efficiency of identifying problems in banks and adequate supervisory response, new competencies were formed to analyze the risks of credit institutions, and supervision is gradually centralized.
“The current tasks that we solve for each of the market sectors, whether it be the banking sector, insurance or microfinance, are different, but strategic goal one is the development of a sound financial system conducive to economic growth where the consumer can get everything necessary services and his rights are reliably protected,” emphasized the Chairman of the Bank of Russia.
The document submitted to the State Duma will be considered at a plenary session of the lower house of parliament. The State Duma also sends the Annual Report of the Bank of Russia to the President Russian Federation and for conclusion to the Government of the Russian Federation.
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Having reviewed the annual report of the Bank of Russia for 2016 (hereinafter referred to as the Report), the State Duma Committee on the Financial Market and the State Duma Committee on Budget and Taxes (hereinafter referred to as the Committees) note the following.
The report was prepared in accordance with the requirements federal law dated July 10, 2002 No. 86-FZ “On the Central Bank of the Russian Federation (Bank of Russia)”, and includes the following main sections;
analysis of the state of the world economy and world markets, economic and financial position Russia, including the financial sector, commodity market, public finance, the national payment system and the balance of payments of the Russian Federation;
a report on the activities of the Bank of Russia, as well as a list of key measures to implement the functions of the Bank of Russia;
annual financial statements Bank of Russia, confirmed Accounts Chamber RF and independent auditors - PricewaterhouseCoopers Audit JSC and FBK LLC;
statistical tables.
In accordance with Article 3 of Federal Law No. 86-FZ of July 10, 2002 “On the Central Bank of the Russian Federation (Bank of Russia)” (hereinafter referred to as the Law), the main objectives of the Bank of Russia are: to protect and ensure the stability of the ruble;
development and strengthening of the banking system of the Russian Federation;
ensuring stability and development of the national payment system;
development of the financial market of the Russian Federation; ensuring the stability of the financial market of the Russian Federation.
In 2016, in order to effectively fulfill the requirements of the Law, the Bank of Russia began to organize its work on the basis of strategic goal-setting, which strengthens the focus on achieving the final results of its activities.
In this regard, the Bank of Russia has significantly improved the structure of the Report, moving from the principle of grouping information in the context structural divisions to a functional principle that reflects the results of work in certain areas of its activity. New structure and the content of the Report not only bring it closer to the functionality of a mega-regulator, but also supplement it with information by assessing new phenomena and challenges in the banking sector that affect its financial stability.
For the first time, the material of the Report quite fully reflects the activities of Balka Rossii in accordance with its mission: ensuring financial and price stability, promoting the development of a competitive financial market. The Report defines five strategic goals: ensuring price stability, ensuring the stability of the financial market, increasing the availability of financial products/services for the population and businesses, developing the national payment system, developing technologies and innovations in the financial market. The state and direction of development and other types of activities of the Bank of Russia are determined. In accordance with the recommendations contained in last year's Conclusion, new sections were added to the Report, including information on research activities of the Bank of Russia and work on the development of the statistical system. In addition, in accordance with the recommendations of the Committees contained in the opinion on the draft Guidelines for the Unified State Monetary Policy for 2016 and the period of 2017 and 2018, the Report has been supplemented with information on the progress of the implementation of this document.
The Committees expect that subsequent annual reports of the Bank of Russia will contain more focused information on the activities to achieve the set strategic goals with a quantitative and qualitative assessment of the degree of approach to them in each year.
In 2016, the Russian economy as a whole completed a period of adaptation to new conditions associated with relatively low oil prices and limited access of Russian borrowers to external financial markets. As the balance of payments adjusts, external debt exchange rate volatility continued to battle. The growth rate of consumer prices at the end of 2016 amounted to 5.4%, which is lower than the forecast presented in the Main Directions of the Unified State Monetary Policy for 2016 and the period of 2017 and 2018 - 5.5-6.5%. In 2017, inflation is also declining ahead of forecasts, in April its level was 4.1%. The stability of the country's financial system was ensured. The Bank of Russia continued to make up for the loss of international reserves, increasing them from $350 billion in April 2015 to $405 billion today.
The country's GDP for the reporting period decreased by 0.2%, which turned out to be much better than forecasts. The decline in investment in the economy slowed down significantly from 10.1% in 2015 to 0.9% in reporting period.
The Bank of Russia continued to pursue its monetary policy in the inflation targeting mode. Given the still high, compared to other countries, inflation rates and inflationary expectations, the Bank of Russia pursued a moderately tough policy. When making decisions to change the key rate, the Bank of Russia proceeded from the priority of maintaining price stability, but at the same time reasonably took into account the possibilities of the Russian economy and the need to maintain financial stability. Reduced twice during the year key rate, in total, from 11% to 10% per annum.
Considering that the dynamics of the decline in inflation was ahead of the targets, and also given the moderate volatility foreign exchange market, the Committees believe that the reduction of the key to be carried out to unambiguous greatness.
The committees note that the Bank of Russia needs to further improve the analysis of price dynamics for monetary policy, continuing to use, along with the consumer price index, such indicators as "trend inflation", the GDP deflator and the producer price index, paying the necessary attention to them in disclosed and disclosing economic sense in their publications.
Using standard liquidity management tools, the Bank of Russia kept overnight rates on ruble interbank loans at a level close to the key rate, which ensured the achievement of the inflation target.
In 2016 central bank The Russian Federation continued to use specialized mechanisms for refinancing credit institutions in order to support those market segments, the development of which in market conditions difficult. The volume of funds provided within the framework of their action was increased by 142.7 billion rubles to 324 billion rubles, with a total limit of 380 billion rubles.
The Russian government needs to strengthen the evaluation of the effectiveness of these tools.
One of the important directions in the development of the Bank of Russia refinancing system should be the use of modern high-tech solutions to create conditions that help banks reduce operational risks and obtain savings by automating some of the functions currently performed.
The Bank of Russia, in accordance with last year's recommendations of the Committees, began to disclose information on total debt non-financial sector (as part of the Financial Review: Conditions for Conducting Monetary Policy), which makes it possible to obtain a complete picture of the level of debt burden in the country's economy and improve the quality of macroeconomic planning. The Bank of Russia continued to reduce the amount of foreign currency liquidity provided to banks on a repayable basis, which proved to be effective during the period of threat to financial stability. In 2016, the debt of credit institutions on such transactions decreased by about half.
The committees stress the importance of the Bank of Russia continuing a set of measures to reduce the level of currencyization of the Russian financial system. The priority of solving this problem is also indicated in the Strategy economic security of the Russian Federation until 2030, which was approved by the President of Russia V.V. Putin on May 13, 2017. This will make it possible not only to reduce the vulnerability of the Russian financial system to shocks in external markets, but also to carry out a more active easing of monetary policy without fearing the risks of an increase in inflation. The resumption of the operations of the Bank of Russia to replenish international reserves with a further improvement in the external economic environment will also help increase the stability of the country's financial system.
The Bank of Russia managed reserve foreign exchange assets in order to ensure the optimal combination of their safety, liquidity and profitability. In 2016, reserve foreign exchange assets increased by USD 12.1 billion. The Bank of Russia continued to consistently increase the volume of monetary gold as part of reserve assets, increasing its stock by 200.2 tons to 1,582.8 tons.
Section U.2. “Ensuring the Stability of the Financial Market” for the first time systematizes information on the activities of the Bank of Russia in the field of macroprudential and microprudential regulation, which, unlike in previous years, is related to all financial market institutions. The logic of unification in a single section "Regulation and Supervision" of the Bank of Russia's similar activities as a mega-regulator in relation to the main participants in the financial market deserves approval. Thus, the Bank of Russia provides a systematic view of the state of regulatory and supervisory work in relation to credit institutions, non-state pension funds, subjects of insurance business, subjects of the national payment system, microfinance organizations, other participants. In the field of supervision, in 2016 the Bank of Russia continued its policy aimed at rehabilitating the banking sector and withdrawing unscrupulous and unviable organizations from the market. In total, the number of credit institutions decreased by 110 to 623 units.
In order to timely identify non-existent or low-quality assets in credit institutions The Bank of Russia has created a Risk Analysis Service, which is one of the important elements in the transition to a proactive supervisory policy to identify problematic situations at an early stage and make decisions more quickly. At the same time, one of the main criteria for the effectiveness of such a policy should be the dynamics of cases of restoration of the financial situation and normal operation of credit institutions, as well as an increase in the share and quality of real assets in banks that lose their license, in connection with which changes in regulation should be introduced by the Bank of Russia smoothly and step by step.
In the reporting period, the Bank of Russia started to centralize the functions banking supervision providing for the introduction of unified, unified standards of supervisory activities aimed at improving the efficiency of banking supervision, ensuring the application of a risk-based approach.
The committees support the Bank of Russia’s striving to implement risk-based principles in banking supervision, which provide for the priority of a substantive approach over a formal one, the presence of economic sense in the actions of credit institutions and their clients, the proportionality of the measures applied to violations, and building a more effective capital for dialogue with banks. At the same time, centralization should not lead to a shortage of local expertise and the ability to receive advice from the Bank of Russia on complex surveys.
The most important change was the beginning of the reform on the transition to proportional regulation of the banking system. As part of this reform, supervised organizations will be divided into banks with a basic and universal license, the capital requirements for the latter will be increased to 1 billion rubles. The purpose of these changes is to simplify the regulatory requirements for small banks, with their focus on providing services to small businesses and the public.
The committees recommend that the Bank of Russia not establish a requirement for banks with a basic license to prepare and submit reports in accordance with IFRS, as well as to implement statutory audit, as well as to revise the regulatory legal acts, reducing and simplifying the reporting of this category of banks, taking into account the scale of their work and restrictions on operations.
The committees consider it necessary to emphasize that the changes being made should be aimed at stimulating small banks to develop as centers of regional lending, and not lead to their exclusion from the financial market. In this connection special attention and elaboration require changes in legal framework activities of this category of banks, which impose stricter requirements on them compared to other credit organizations. It is advisable to implement these changes after the formation of the practice of these banks, based on an examination of their impact on the behavior of different client groups of this category of credit institutions. Of particular importance in this context is the issue of introducing insurance for small business funds in such banks, as well as explaining the role and importance of small banks in pursuing the information policy of Balka Rossii.
A similar approach to regulatory proportionality is recommended by the Committees for professional participants the securities market and other non-banking financial institutions, where also, depending on the range and scale of operations, different regulatory burdens may be provided for different organizations. This will ensure competition both within each branch of the financial industry and different sectors among themselves, which means the development of the financial industry as a whole. In some cases, both within the framework of the implementation of the principle of proportionality, and independently of it, the issue of reducing the regulatory burden should be considered.
The practice of consolidated supervision of banking and financial groups and holding companies continued to develop, which, taking into account the capabilities of the Bank of Russia as a mega-regulator, made it possible to more accurately and fully assess the risks in the activities of such associations.
In addition, the Committees consider it necessary to pay attention to the current practice of investing citizens' pension savings in assets financial groups associated with private non-state pension funds. Such investment, aimed not at maximizing future pensions, but at increasing the profits of shareholders of non-state pension funds, in fact, is a violation of the rights and legitimate interests of future pensioners.
An important task of the Bank of Russia is to maintain the proper level of competition in the banking and financial services sector and prevent its excessive concentration. The committees note that the dynamics of the indicators of systemically important credit institutions in 2016 turned out to be significantly higher than in the banking system as a whole, which increases the risks of industry monopolization. Similar processes were observed in other segments of the financial market. In this regard, it seems appropriate to recommend that the Bank of Russia develop a set of antimonopoly measures in the financial market.
In order to improve the methodology and tools for preventing the bankruptcy of credit institutions, the Bank of Russia initiated a change in the financial recovery mechanism. Sanctions under the new mechanism provide for the direct participation of the regulator in the capital of the banks being rehabilitated, which should contribute to their speedy return to the competitive market, and can also reduce the cost of procedures for their financial recovery.
The committees point out that when making decisions on the advisability of financial recovery, it is necessary to take into account the social and regional significance of a business that may cease to exist in the event of bankruptcy of credit institutions. At the same time, due to the closure of points of sale and the reduction in the number of ATMs of large banks, accompanied by a decrease in the number of small regional banks, there is a decrease in the availability of banking services in selected settlements and regions, the Committees deem it necessary to recommend that the Bank of Russia further study this issue and develop a set of measures aimed at preventing a decrease in the availability of financial services in these territories.
Of serious concern are cases of falsification and destruction of creditor and depositor bases by the management of credit institutions, which can undermine confidence in bank deposits as a reliable way to save money. In this regard, the Committees suggest that consideration be given to introducing, on a voluntary basis, personal account depositor after submitting a corresponding application containing information about his deposits in various credit institutions, which will increase the efficiency of identifying such schemes.
In 2015, the activity of the Bank of Russia in building an effective system of control and supervision over the financial market reached a new level. A strategic document was approved - The main directions for the development of the financial market of the Russian Federation for the period 2016-2018, containing a description of plans for the development of all sectors of the financial market in medium term. The text of this document has been finalized taking into account the comments submitted following its
consideration at parliamentary hearings in State Duma.
It should be noted that the presented document is aimed at improving the level and quality of life of Russian citizens, developing Russian companies and regions, the economy as a whole. The Bank of Russia has identified the measures that need to be implemented in order to achieve the set goals, grouping them into 10 main areas. At the same time, the document, which is of a strategic nature, in the opinion of the Committees, should be supplemented with a detailed action plan for individual segments of the financial market, which would ensure the predictability of the regulator's actions and, consequently, improve the quality of strategic and current business planning of financial institutions.
In 2016, the Bank of Russia continued to carry out large-scale reforms in the field of regulation and supervision of all segments of the financial market in order to increase their sustainability and transparency. In general, the Committees consider the decision to switch to a unified regulation of the financial market justified, and its implementation at this stage successful. However, the task of restoring investment activity in the country through the use of existing and promising financial market instruments to stimulate the process of transforming savings into investments is a priority.
The unification of approaches to the rules and methods of regulation in various market segments continued, taking into account their sectoral specifics. A risk-oriented approach and the principle of proportional regulatory burden were actively introduced, taking into account the systemic importance of a financial institution, mechanisms for self-regulation of the market were developed. The regulator should pay increased attention to preventing the occurrence of self-regulatory organizations conflict of interest. It is planned to include organizations operating in the field of leasing into the sphere of control over the financial market.
In 2016, a number of major projects were completed to create a full-fledged infrastructure for the Russian financial market. A national reinsurance company was created, and the formation of a system for guaranteeing pension savings was completed. However, there is still no decision to introduce insurance of citizens' funds in the foam market, which deprives them of the guarantees that are usually provided to individual investors around the world. Such an insurance system should not protect against market risks, but must protect at least from the risks of theft of assets from the accounts of professional participants in the securities market. The system of investment insurance should be formed at the expense of the industry that attracts funds from citizens, and be extended, at least at first, to funds for individual investment accounts. Legislation on investment insurance for IIS is desirable to be adopted by the end next year, taking into account the inflow of funds from the population to these accounts.
In the insurance segment, despite a general drop in demand due to a slowdown in economic activity, operating organizations managed to increase the volume of collected premiums by 15.3%, to 1,180.6 billion rubles, while reducing the volume of total payments by 0.7%, to 505.8 billion rubles.
To eliminate interruptions in the implementation of CMTPL policies by insurance companies, the Bank of Russia established requirements for the conclusion of CMTPL contracts in the form of electronic documents, the share of which showed a steady growth trend. In order to strengthen the fight against fraud in the OSAGO market, amendments to the legislation were prepared that established the priority of in-kind compensation over cash, which entered into force in 2017.
The development of the microfinance market required the Bank of Russia to introduce a differentiated approach to regulating the activities of its participants with their division into microfinance and microcredit companies, while the latter are deprived of the right to attract funds from the population. In 2016, the Bank of Russia quarterly calculated and published average market values full cost loans in the microfinance market. The committees point out that with the excessively high cost of loans, which in some market segments reaches 600% per annum, the use of the services of financial institutions often does not improve, but worsens the situation of borrowers, and also stimulates the issuance of obviously bad loans. In this regard, it seems appropriate to take a set of measures to significantly reduce the marginal cost of loans for the population. On the other hand, sizing financial requirements within a reasonable framework will create conditions for strengthening financial discipline customers, which is the cornerstone for the sustainability of the financial system.
At the same time, the Report provides insufficient information on the activities credit cooperatives, including SKPK and KPK. The Committees recommend that the Bank of Russia pay more attention to the disclosure of this information in the Report.
Systematic work continues to identify organizations engaged in illegal financial activity in relation to individuals, using an automated supervision model. Significant efforts are directed by the Bank of Russia to suppress and prevent the activity of financial pyramids.
The Committees recommend that the Bank of Russia reflect in the Report information on the results of activities to compensate for damages from the actions of unscrupulous organizations related to the violation of the rights of consumers of financial services.
The Bank of Russia pays great attention to the analysis and evaluation of the possible use of new financial technologies based on the use of remote and paperless methods, which are the driver of the development of the modern financial industry. In addition, in line with the recommendations of the Committees for annual report for 2015, the regulator in 2016 paid increased attention to ensuring the continuity of its activities, as well as the uninterrupted operation of the key infrastructure of the financial market in any, even the most difficult conditions, which is a justified solution in a situation of open threats from a number of countries, as well as increasing risks and scale of cyberattacks in the world.
Work was continued to expand the availability of financial services, protect the rights of their consumers and investors. Ensuring the proper level of protection of the rights of consumers of services of financial organizations is the most important condition for the further development of the entire market. In the securities market, it is necessary to introduce a new profession - an investment adviser, the regulation of which, as the public's interest in investing in financial instruments grows, becomes more and more important. The investment advisor industry, including independent investment advisors, must improve the quality of publicly accepted investment decisions, dramatically increase the availability financial instruments in the regions of the country.
Inseparable from the solution of the problem of building a civilized market and activities to improve financial literacy population of great social importance. With the active participation of the Bank of Russia in 2016, a financial literacy course was developed and introduced into the school curriculum, relevant study guides. The publication of information brochures on various aspects of work in the financial market continued.
The Committees recommend that this practice be expanded through the preparation of brochures that will serve as a guide to the financial market for the public and entrepreneurs, as well as to increase the availability of financial market databases, which should be a public good.
A significant event of the past year was the launch of the full-scale activities of the national Analytical Credit Rating Agency (ACRA), which contributed to increasing the transparency of the rating industry, which needed to be reformatted after the introduction of politically motivated sanctions by individual states that undermined the credibility of international agencies. At the same time, the process of formation of the national rating industry is still at the initial stage, until a competitive field is formed, de facto only one rating agency fully operates on the market. In this regard, the Committees recommend speeding up the accreditation of national rating agencies, inclusion of their ratings in the regulation loop and the beginning of their active work.
One of the priority activities of the Bank of Russia continues to be international cooperation, which must be carried out in order to build a more sustainable, fair and efficient architecture of global finance, through more active participation in the development of global rules in this area.
In 20-6 the Bank of Russia continued to develop the country's payment system. An infrastructure was formed to ensure the acceptance of national payment cards "Mir" throughout the country. Work is underway to ensure the possibility of their use abroad, as well as to prepare domestic financial products for entering the international market, in partnership with leading foreign companies.
The Bank of Russia continued its policy aimed at strengthening opposition to financial institutions suspicious transactions carried out using various schemes with securities, as well as by overestimating the cost of imports to Russia. As a result, the volume of illegal withdrawal of funds abroad in 2016 compared to 2015 decreased by 2.7 times to 183 billion rubles, cash withdrawals in the banking sector - by 13% to 521 billion rubles.
In order to further help reduce the volume of withdrawals of funds abroad, the Committees support the proposal of the Bank of Russia on the need to intensify joint work on the development of proposals that provide for the repatriation of loans.
The Bank of Russia continued to reorganize the structure of internal divisions, including to eliminate duplicating functions and optimize their headcount. In 2016, the headcount of the Bank of Russia decreased by 4.7 thousand, or 8%, to 54.7 thousand.
Noting the need for this process, the Committees emphasize that the current policy of cost optimization, which is possible largely due to the intensive development of information technologies, has its limits, must be technologically and organizationally justified, not to the detriment of work efficiency or create risks of reducing the personnel potential of the Bank of Russia.
In 2016, the Bank of Russia actively developed the area of work on economic research, improved the system of forecasting and modeling of economic processes, having established itself as one of the most important centers of competence in Russia, which allowed the country's financial authorities to take into account the achievements of modern economics when making your decisions. A number of publications and analytical materials prepared by the Bank of Russia received wide coverage in the specialized press, which indicates their relevance and relevance.
The report testifies to the great work that the Bank of Russia is doing in the field of cooperation with global international organizations: the BIS (and BIS committees), the IMF, the World Bank, the OECD, the Group of 20, the Financial Stability Board, international organization commissions on the securities market, the International Organization of Insurance Supervisors, etc. Despite the ongoing political tension with developed countries, the Bank of Russia manages to maintain working, constructive relations with these structures and achieve positive results in solving the tasks set. The Bank of Russia is also doing a lot of work on the integration financial markets within the framework of the EAEU, to develop cooperation with regulators of the CIS countries, to develop relations with the BRICS countries, primarily with China.
The committees support the Bank of Russia’s desire to strictly follow the principle of information openness, and recommend, in accordance with the broad international practice in the near future, proceed to the disclosure of the voting results of the Board of Directors Central Bank on the most important issues of its activities, as well as to publish a dissenting opinion and arguments of the members of the Board of Directors, whose position during the discussion did not agree with the final one.
Summing up the consideration of the Report as the most important tool for raising the awareness of economic agents regarding the processes taking place in the Russian financial system and the ongoing monetary policy, the Committees recommend that the State Duma take note of the annual report of the Bank of Russia for 2016.
