Elvira Nabiullina, Governor of the Bank of Russia, addressed members of the Federation Council in a speech focused on the development of the financial market and ongoing efforts to strengthen economic stability. She acknowledged close collaboration with senators and committees on financial issues.
Nabiullina discussed current challenges facing the Russian economy, including intensified sanctions and resource constraints. “We raised the key rate in both 2023 and 2024. Why? We did this to protect the economy as a whole, Russian households and businesses, as well as the budget, from the threat posed by rising inflation,” she said. Addressing concerns about inflation versus economic growth, she added: “Bringing inflation down does not conflict with the economic growth objectives or national development goals.”
She noted that unemployment is at a historic low while wage growth remains high but cautioned that inflation is still above target levels. According to Nabiullina, rapid lending expansion could further fuel price increases for goods and services if not carefully managed. Over the first nine months of 2025, corporate loan portfolios grew by ₽5.4 trillion—about half last year’s pace but still substantial—with expectations for continued growth into next year.
Nabiullina emphasized that capital buffers in banks remain strong, enabling further loan expansion without compromising stability: “Now, the banking system’s capital buffer above the mandatory minimum is ₽8 trillion.” She stressed that prudent regulation is essential for maintaining resilience in any scenario.
On technological advances in finance, Nabiullina highlighted an increase in online financial services usage from 63.5% in 2020 to 88.5% in 2025—a level she described as high by international standards. The implementation of a national payment infrastructure has made Russia’s financial system more independent and cost-effective for businesses.
She also spoke about pilot testing for digital ruble accounts set to expand starting September 2026: “Starting from September 2026, all clients of major banks will be able to open digital ruble accounts and convert non-cash rubles into digital rubles and vice versa.” Digital ruble transactions are expected to become available to all regional and local budgets by 2027.
In cooperation with other government agencies, new services have been introduced through integration with public service platforms—such as social deposit accounts—which aim to simplify access for citizens with small incomes.
Consumer protection was another focal point of her address. Nabiullina called for stronger penalties against banks violating consumer rights: “Fines we are proposing now – which some call excessive – have been effectively applied for a decade in cases of anti-money laundering violations.” She argued similar deterrents should apply to consumer protection violations.
The speech also covered measures addressing over-indebtedness among borrowers through legislative guarantees like repayment holidays for small businesses and individuals, enhanced debt settlement mechanisms across multiple lenders, and new regulations covering buy-now-pay-later services.
Efforts continue against illegal lending activities; nearly 5,800 unauthorized schemes were detected over three quarters in 2025 alone. More than 16,000 fraudulent websites were blocked during this period as part of coordinated actions with law enforcement agencies.
To counter telephone fraud—a persistent issue—Nabiullina reported positive initial results after recent regulatory changes: complaints dropped by 15% during the first nine months of 2025 but she cautioned it was too early to declare lasting progress.
A self-ban mechanism allowing individuals to prevent themselves from taking out loans has proven popular since its launch in March; nearly 17 million people have used it so far. Additionally, new automatic cooling-off periods before large loans are issued aim to prevent fraud-related losses.
She concluded her remarks by stressing continued collaboration between regulators and legislators is vital for efficient policy decisions benefiting both markets and consumers: “Thank you very much for your proposals as they enable us to develop more efficient and balanced decisions.”
