Banking sector proves its resilience

In 2018, the Bank of Russia held stress-testing of credit institutions with the use of macromodelling; its outcomes point to the resilience of the banking sector as a whole, notes the Banking Supervision Report 2018. The document that provides a detailed analysis of the Russian banking sector also analyses the performance of banks with a basic licence following the transition to a proportionate regulation.

The document states that the banking supervision continued to focus on preventive advisory supervision. Meanwhile, in 2018, the centralisation of banking supervision was completed; this ensures faster supervisory decision-making and the application of uniform supervisory standards.

The Bank of Russia applies incentive-based banking regulation with the focus on higher accessibility of loans to small and medium-sized enterprises and favourable conditions for project finance, among other things, in housing construction with the use of escrow accounts.

Last year, credit institutions increased their capital and profits, and the Bank of Russia will continue to develop regulation and supervision ‘so that the resources accumulated by the banking system transform into the resources for growth of the Russian economy and public wellbeing,’ noted Elvira Nabiullina, Bank of Russia Governor, in the foreword to the Report.