Statement at the Conclusion of Financial Sector Assessment Program Mission to Russian Federation | WPN World People News

A joint International Monetary Fund (IMF) and World Bank (WB) mission, led by Karl Habermeier (IMF) and Aurora Ferrari (WB), visited Moscow during March 15–30, 2016 to conduct an assessment under the Financial Sector Assessment Program (FSAP). The FSAP assessed financial sector strengths and vulnerabilities, and reviewed the supervisory framework, contingency arrangements, and measures to promote financial sector development. The mission met with Ms. Elvira Nabiullina, Governor of the Central Bank of Russia (CBR), other senior central bank and government officials, as well as financial sector representatives, including banks.

At the conclusion of the mission, Mr. Habermeier and Ms. Ferrari issued the following statement:

“Against the background of a challenging macroeconomic environment, the banking system has been kept stable by the authorities’ decisive policy response, which included liquidity provision, capital support, and temporary regulatory forbearance. The FSAP team and the authorities discussed actions to make the banking system stronger and more resilient to downside risks, notably improvements to the resolution framework, a review of banks’ asset quality, and strengthening banks’ capital.

“With the transformation of the CBR into a mega regulator, supervision of the financial sector has been enhanced. The FSAP team conducted assessments of the adherence to international standards in the areas of banking supervision, securities markets, and insurance. These assessments will serve to inform the further development of comprehensive risk-based supervision of the financial sector. The authorities have also made considerable progress in establishing an effective macroprudential policy framework, and are encouraged to expand the range of macroprudential policy tools.

“Over the medium and longer terms, the diversification and deepening of the financial sector are priorities to support strong and sustainable economic growth. Currently, financial intermediation provides a relatively low contribution to growth. Comprehensive measures need to be taken to raise financial inclusion and the efficiency of the highly concentrated and mostly state-owned banking system.”

Source: International Monetary Fund