Bank of Russia outlines financial market development guidelines for the next three years

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Draft Guidelines for the Development of the Russian Financial Market in 2019–2021 sets forth long-term strategic targets, which include creating confidence-based environment, advancing competition in the financial market, and maintaining financial stability and financial inclusion.

The draft document is offered for public discussion. It describes Bank of Russia objectives and principles related to the financial market development, as well as specific methods to achieve them. Priority development goals remain unchanged. These goals include raising the level and improving the quality of living standards of Russian citizens with the help of financial market instruments, fostering economic growth via the provision of competitive access to funding and creating conditions conducive to the progress of financial industry.

The draft document made further attempts to develop cross-sectoral approach to the financial market, whereby a range of measures, once implemented, will produce a concurrent effect across several sectors in the financial market. The Bank of Russia intends to give priority attention to creating friendly setting for the digitisation and competition development in the financial market. Measures to improve corporate governance and to counter malpractice will strengthen the spirit of confidence in the financial market. Growth in the financial system stability and in the trust to financial institutes will be helped by improvements in supervisory methods, implying a broader use of professional judgment, development of financial market infrastructure and derivatives market. Economic growth will be assisted by measured aimed to develop the long-term money segment and stimulative regulation. International collaboration will continue to develop, including links with Eurasian Economic Union and BRICS nations.

Work will go on to ensure and improve financial inclusion, financial literacy and consumer protection. This work has been actively pursued as part of the implementation of the Guidelines for the Development of the Russian Financial Market in 2016–2018.

The draft retains sections devoted to the development of a number of segments in the financial market, i.e. banking and insurance sectors, securities and commodities markets, collective investment and trust management sectors, microfinance market, payment system and payment infrastructure.

The proposed draft document will be revised following its discussions with the professional community and approval by the Government of the Russian Federation. The Bank of Russia is going to approve the final version of the document and the road map thereto in late 2018 – early 2019.

Your comments and suggestions to the draft document are welcome at mev4@cbr.ru.

6 June 2018

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