Bank of Russia submits 2022 Annual Report to State Duma
The Bank of Russia’s Annual Report proves that the financial system has not only been able to weather the storm of sanctions, but has also helped mitigate their consequences for people and businesses. It was supporting clients and providing necessary resources to the economy — Bank of Russia Governor Elvira Nabiullina emphasises in her address to readers.
The document describes the measures taken by the regulator during the first days and weeks after the enactment of the sanctions in order to cope with the surge in inflation and protect people’s savings, help borrowers, prevent discontinuation of lending, and avoid investors’ critical losses. Already by summer 2022, the Bank of Russia started to phase out anti-crisis management measures. The second half of the year was a period when the Bank of Russia was developing new systemic approaches for the future and started their implementation.
According to Elvira Nabiullina, the challenging experience of 2022 was yet another evidence that it is crucial to maintain the resilience of the financial system in favourable times. If not for sufficient capital buffers accumulated by banks, the absence of hidden problems, and the consistent reduction in the proportion of foreign currency over the previous years, it would have been much harder or even impossible to ensure financial stability.
Another essential lesson learnt is the need to advance the national infrastructure, the Bank of Russia Governor notes. The exit of international payment systems and the disconnection of a part of banks from SWIFT have not disrupted transactions inside the country owing to the operation of the National Payment Card System and the Financial Messaging System. ‘Our current priority is to develop a convenient and efficient system of settlements and payments with our foreign partners based on an infrastructure that is independent of the sanctions,’ Elvira Nabiullina stresses. In the future, cross-border settlements will also be promoted by the digital ruble that is planned to be introduced.
The Bank of Russia Governor considers that an increase in lending to top-priority industries and the creation of a comfortable environment for investors and issuers are also among the key tasks. They will support the structural transformation of the economy.
‘Our long-term goals remain unchanged, and we stay committed to them regardless of the external challenges. These are steadily low inflation, the stability of the financial system, convenient and reliable technologies for any financial operations, and ultimately — Russian people’s welfare and well-balanced growth of the country’s economy,’ Elvira Nabiullina emphasises.
The document presents the main results of the regulator’s work and contains its financial statements and auditors’ reports.
Simultaneously with its Annual Report, the regulator will release a more compact document for the general public — The Bank of Russia’s Work: Results in Brief for 2022.