The draft guidelines for the development of the Russian financial market in the years 2019 to 2021, released by the Bank of Russia on June 6, 2018, set forth long-term strategic targets that include creating a confidence-based environment, advancing competition in the financial market, and maintaining financial stability and fiscal inclusion.

The draft document is offered for public discussion. It describes the objectives and the principles that the Bank of Russia espouses regarding financial market development, as well as the methods of achieving the targets set. Priority development goals remain unchanged. These goals include raising the level and improving the quality of living standards of Russian citizens using financial market instruments, fostering economic growth via competitive access to funding, and creating conditions conducive to the development of the financial industry.

The draft document made further attempts at developing a cross-sectoral approach to the financial market, whereby a range of measures, once implemented, will produce a concurrent effect across multiple sectors in the financial market. The Bank of Russia intends to accord priority attention to promoting the digitization of the fiscal market and to ensuring that the market stays competitive. Measures to improve corporate governance will strengthen the spirit of confidence in the financial market. Growth in the financial system and the citizen’s trust to banking establishments will be boosted by improvements in supervisory methods, the development of financial market infrastructure, and progress in the derivatives market. Measures aimed at developing the long-term money segment and stimulative regulation will assist economic growth. International collaboration will continue to develop, including with the Eurasian Economic Union and the BRICS nations.

Work will go on to ensure and improve financial inclusion, financial literacy, and consumer protection. This work has been actively pursued as part of the implementation of the guidelines for the development of the Russian financial market in the years from 2016 to 2018.

The draft document retains sections devoted to the development of a number of segments in the financial market, i.e. the banking and the insurance sectors, the securities and the commodities markets, collective investment and trust management sectors, the microfinance market, as well as payment systems and payment infrastructure segments.

The proposed draft document will be revised following its discussions within the professional community and its approval by the Russian government. The Bank of Russia is going to approve the final version of the document and the road map in late 2018 or early 2019.