Banking sector proves its stability

The country’s banking system remains steady even under stress. This is the conclusion of Banking Supervision Report 2016. The document analyses in detail the types, parameters and outcomes of stress tests of Russian banks conducted by the mega-regulator last year.

‘Overall, the estimates attest that the Russian banking sector has retained the stability it needs to meet household and corporate demand for banking services and stands ready to bolster the emerging growth trends in the Russian economy,’ notes Elvira Nabiullina, Bank of Russia Governor, in the foreword to the issue.

The report examines in detail a wide range of issues related to the stability of the national banking sector, and analyses global risk issues and estimates of the banking system’s systemic stability. The banking sector’s key risks, including non-resident transactions and operational risk, are the focus of attention.

Special attention is given to the analysis of the Bank of Russia’s efforts to eliminate regulatory arbitrage, improve the competitive environment and regulate cooperation between different segments of the financial market. A separate section is dedicated to key aspects of cooperation between the banking sector and non-bank financial institutions.

Compared with the 2015 report, the new issue features an extended section on the improvement of approaches applied in banking regulation and supervision.