Bank of Russia’s 2018 Annual Report submitted to State Duma

The Bank of Russia’s Annual Report highlights the results of the mega-regulator’s key activities, analyses the external and internal environment, and contains the Bank of Russia’s annual financial statements, the auditor’s report and the report of the Accounts Chamber of the Russian Federation.

‘The Bank of Russia’s policy is aimed at delivering on strategic goals of raising the financial sector’s efficiency and enhancing its role in Russia’s economic development,’ reads the foreword by Bank of Russia Governor Elvira Nabiullina.

The first strategic goal is price stability. According to Elvira Nabiullina, the 4% inflation target was first achieved in 2017 and last year monetary policy was aimed at keeping inflation near the target. In 2018, the consumer price index held close to the target reading at 4.3% despite increased internal and external risks.

A number of the Bank of Russia’s measures were aimed at delivering on the second strategic goal – financial market stability. In 2018, banks with a basic licence were established, a resolution framework for insurance companies was introduced, and new consumer lending risk limits were put in place. Dubious transactions continued to show a downward trend. Special focus was made on cyber-security of financial organisations.

The Bank of Russia’s third important goal was the expansion of financial inclusion; in 2018, the regulator launched a pilot project to raise financial inclusion in remote and underpopulated areas of the Far East. Special focus was made on higher affordability of bank lending for small and medium-sized enterprises – lending rates in this segment were significantly decreased.

Last year saw a considerable increase in the number of Mir payment cards and in the volume of transactions made using them. These measures served the mega-regulator’s fourth strategic goal of developing the national payment system.

Ultimately, in 2018, the Bank of Russia’s faster payments system was completed, and the biometric remote identification of financial consumers was launched; these were the results of the Bank of Russia’s efforts to develop technologies and support innovations in the financial market.

‘The comprehensive implementation of strategic objectives serves the national goals of the Russian Federation, makes a significant contribution to sustainable and high-quality economic growth, and is part of the government’s policy to raise Russians’ prosperity,’ concluded the Bank of Russia Governor.

The document submitted to the State Duma will be considered at the plenary meeting of the lower house of parliament. The State Duma also forwards the Bank of Russia’s Annual Report to the President and to the Russian Government for approval.