Non-bank financial institutions: key performance indicators

As against the same review over 2015 Q2, the document has a number of new features. In addition to insurance agents, non-governmental pension funds and unit investment funds, it analyses in detail activity trends of professional securities market participants and microfinance organisations (MFOs) as well.

In particular, the review indicates the reduction of the majority of interest rates on given microloans thus paving the way for MFOs to maintain the volume of extended loans. However, the reduction of the interest margin and the growth of overdue debt turned out to be detrimental to financial results in general.

Based on statistics for 2015 Q3, the collective investment market witnessed the growth of the net asset value and inflow of investments into closed-end and open-end unit investment funds compared to the same period of 2015. Also, open-end unit investment funds which enjoy the highest demand from non-qualified investors showed profits far above the rate of consumer price growth.

Non-bank institutions which belong to the professional securities market community did not show any significant growth. Their assets vary in the range close to 1% of GDP. At the same time, despite the still going on shrinkage of professional participants, the improved dynamics of financial independence indicators may add to the safety margin in this segment.

The review includes a section where the methodology for calculating key indicators is described. Also, we have more additions to the core material for each review section which gives an insight into some interesting event or phenomenon.

The review was developed by the Bank of Russia Non-bank Financial Institutions’ Statements Collection and Processing Department with participation of Bank of Russia relevant departments and NBI bloc management on the basis of market analysis over the first nine months of 2015.