Bank of Russia’s 2019 report submitted to State Duma

Inflation slowed down in the course of the year, enabling the Bank of Russia to reduce its key rate; annual inflation totalled 3%. Foreign currency reserves expanded. The share of foreign currency in bank assets and liabilities continued to decline. Once the debt service-to-income ratio was introduced, growth paces of the consumer lending market stabilised. The banking sector’s resilience was improved as considerably fewer lenders had their licences revoked; the year saw a number of complete resolutions enabled by the Banking Sector Consolidation Fund. Major developments in the year included the transition to escrow accounts for funding in the construction sector. Dynamic expansion was seen in the bond market. The stock market was marked with noticeable growth in interest on the part of retail investors. Financial technologies continued to expand and cashless payments grew. The Faster Payments System was launched early last year.

The report provides analysis of external and domestic conditions for Bank of Russia functioning, its annual financial statements and auditors’ reports.

Addressing the readers, Bank of Russia Governor Elvira Nabiullina assessed annual results mainly from the perspective of the financial system’s preparedness for the challenges the country had to address in early 2020 in the context of spreading coronavirus and unfavourable external economic factors. According to Elvira Nabiullina, a key result in financial system development in 2019 was the fact that ‘Russian financial institutions are able not only to withstand current challenges but also support the economy with resources at a time of recovery, ensuring that it returns shortly to a growth path’.

The State Duma, the lower chamber, will consider the report, submitted on 13 May, at a plenary session. The State Duma also presents the Bank of Russia Annual Report to the President and Government of the Russian Federation.