Russian Federation Financial Sector Assessment Program : Macroprudential Policy
Financial stability oversight responsibilities are currently shared between the Central Bank of Russia (CBR) and a high-level inter-agency National Council on Ensuring Financial Stability (FSC). Given its role as the single financial regulator and...
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| Format: | Report |
| Language: | English |
| Published: |
Washington, DC
2017
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| Online Access: | http://documents.worldbank.org/curated/en/837481511169771122/Russian-Federation-Financial-sector-assessment-program-technical-note-macroprudential-policy http://hdl.handle.net/10986/28976 |
| Summary: | Financial stability oversight
responsibilities are currently shared between the Central
Bank of Russia (CBR) and a high-level inter-agency National
Council on Ensuring Financial Stability (FSC). Given its
role as the single financial regulator and supervisor since
September 2013, CBR has naturally become a macroprudential
authority. In recent years, CBR has used a number of
macroprudential tools to deal with risks, mainly those
stemming from retail lending. An expanded use of
macroprudential tools to establish adequate buffers could
help safeguard financial stability in the medium term. The
economy is highly exposed to swings in oil prices, which in
turn may significantly affect financial conditions and
amplify business cycles through macrofinancial linkages. In
the medium term, greater volatility driven by oil price
movements may warrant a larger buildup of buffers to protect
banks against solvency risk. The CBR Law should be amended
to provide for a more comprehensive set of macroprudential
tools. Currently, the law does not provide a legal
foundation for CBR to use the full set of recognized
macroprudential tools, such as limits on loan-to-value (LTV)
and debt service-to-income (DSTI) ratios, as well as on
growth of certain credit. The current institutional
arrangements appear to be functioning well, but some
additional steps could be taken to support timely
macroprudential actions in the future. CBR has the necessary
technical capacity for systemic risk monitoring and
assessment, but additional work is needed. CBR regularly
publishes Financial Stability Review, which is indicative of
strong analytical capacity. |
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