The Bank of Russia’s spring session of online classes on financial literacy was viewed 3.2 million times, with participation from more than half of Russian schools (51%). In regions such as Tatarstan, the Chuvash Republic, Sevastopol, the Primorye Territory, and the Ryazan and Murmansk Regions, all schools participated without exception. Additionally, two-thirds of Russia’s technical schools and colleges watched the spring session.
House Financial Services Committee Chairman Patrick McHenry (R-NC) and U.S. Senator Cynthia Lummis (R-WY) led a letter to President Joe Biden urging him to reconsider his threat to veto Staff Accounting Bulletin (SAB) 121 Congressional Review Act (CRA), which passed the Senate and House with strong bipartisan support.
The Bank of Russia will now require credit rating agencies (CRAs) to disclose credit ratings along with the assessment of stand-alone creditworthiness of rated entities. The central bank has published a draft ordinance aimed at ensuring its regulatory impact assessment.
The debt burden of clients of microfinance organizations (MFOs) has been decreasing. According to the 2024 Q1 results, the proportion of loans overdue for more than 90 days went down to figures seen in early 2022 and totaled 32%. This trend was partly due to measures taken by the Bank of Russia to reduce household debt burdens.
On May 29, 2024, the National Financial Board convened and approved Dmitry G. Dubynin as the sole executive body of the national payment card system operator.
In the first quarter of 2024, pension reserves of non-governmental pension funds (NPFs) expanded by 1.6% to ₽1.9 trillion. This growth was driven by returns on investment and the inflow of funds under non-governmental pension insurance agreements and into the long-term savings program launched at the beginning of the year.
Executive Director of Payments, Supervision and Oversight Ron Morrow recently addressed the evolution of payment systems in Canada at the Payments Canada SUMMIT in Toronto. Morrow emphasized the need to modernize Canada's payment infrastructure amidst increasing digitalization.
The Bank of Russia has announced the establishment of the Financial Monitoring and Foreign Exchange Control Service (FMFEC Service), effective June 1, 2024. This new service will be formed from the existing department and relevant regional divisions, centralizing functions related to financial monitoring and foreign exchange control.
The BRICS deputy finance ministers and central bank governors convened to discuss the current outcomes of the group's financial track. The meeting saw participation from Bank of Russia First Deputy Governor Vladimir Chistyukhin and Deputy Finance Minister of the Russian Federation Ivan Chebeskov.
Growth in the portfolio of loans to developers accelerated to 6% in the first quarter of 2024, compared to 2% in the fourth quarter of 2023. This increase indicates that a substantial number of new development projects were launched and offered for sale while government-subsidized mortgage programs remained active.
Chairman of the House Financial Services Committee, Patrick McHenry (NC-10), announced a forthcoming hearing by the Subcommittee on Digital Assets, Financial Technology and Inclusion. The hearing is titled "Next Generation Infrastructure: How Tokenization of Real-World Assets Will Facilitate Efficient Markets."
In April and May 2024, economic growth continued in the Russian regions, driven by higher domestic demand. An increase in incomes and lending supported consumer activity.
Kirov, a historic Russian city known for its trade and handicraft industry, is celebrating its 650th anniversary. To commemorate this milestone, the Bank of Russia has issued a special 3-ruble silver coin as part of the Cities series. The coin was released on May 28, 2024.
A new law adopted by the State Duma on May 28, 2024, allows mortgage borrowers facing financial difficulties to independently sell their pledged property. This development aims to provide an alternative for borrowers who are unable to repay their loans.
The Bank of Russia has put forth a recommendation urging issuers to disclose more information during public offerings. This guidance emphasizes the need for companies to share details on the principles and approaches used in distributing securities among investors before applications are collected, as well as information about the actual receipt of assets post-sale.
In the first quarter of 2024, the Russian economy exceeded most growth forecasts, though it appears to have slowed slightly in April and May, according to preliminary data. Despite this growth, the supply of goods and services is not keeping pace with the rising aggregate demand driven by increasing incomes, lending, and public demand.
Corporate lending in April showed a notable increase, with growth recorded at 1.9%, slightly higher than the 1.8% observed in March. Developers contributed significantly to this rise, accounting for about one-third of the total increase. Additionally, loans were extended to companies across various sectors to complete ongoing investment projects and fulfill state contracts.
The Bank of Russia has announced plans to align the criteria for protecting retail investors in both the stock market and marketplaces. A new threshold for transactions involving complex financial instruments will be set at ₽6 million without requiring testing. This threshold is proposed to increase to ₽12 million in 2025 and further to ₽24 million in 2026. The same threshold will apply for granting qualified investor status based on income qualifications, according to a draft ordinance from the regulator.
In the first quarter of 2024, banks thwarted nearly 13.9 million attempts by cybercriminals to steal funds from clients, as reported in the Review of Reporting on Information Security Incidents Related to Funds Transfers. This achievement is attributed to credit institutions' ongoing efforts to enhance their anti-fraud systems and improve business processes ahead of new legislation aimed at countering cyber fraud.
In May, the Bank of Russia's Business Climate Index (BCI) rose to 11.1 points from 10.7 in April, nearing its highest levels in the past 12 years. Business activity continues to grow intensively, with businesses reporting higher estimates of current demand for products and output compared to April. However, expectations for these indicators over the next three months have slightly decreased.