Banking Supervision Report 2015

BANKING SUPERVISION REPORT 2015

Moscow

2016 BANKING SUPERVISION REPORT 2015

No part of the Report may be duplicated without reference to the Bank of Russia.

№ 50 20156

Analysis and Statistics PAYMENT AND SETTLEMENT SYSTEMS

Moscow 2016

Moscow 2 BANKING SUPERVISION REPORT 2015 2016

CONTENTS

FOREWORD ...... 4 I. STATE OF THE RUSSIAN BANKING SECTOR...... 5 I.1. General economic conditions...... 5 I.1.1. Macroeconomics and external global risks ...... 5 I.1.1.1. External global risks...... 5 I.1.1.2. Macroeconomics...... 6 I.1.2. Financial markets...... 6 I.1.2.1. Bank of Russia operations to regulate banking sector liquidity...... 6 I.1.2.2. Money market...... 8 I.1.2.3. Foreign exchange market...... 8 I.1.2.4. Corporate securities market...... 9 I.1.3. Banking sector macroeconomic performance...... 11 I.2. Institutional aspects of banking sector development...... 11 I.2.1. Quantitative characteristics of the banking sector...... 11 I.2.2. Development of regional banking ...... 11 I.2.3. Banking services concentration...... 12 I.2.4. Interaction between the banking sector and non-bank financial institutions...... 13 I.3. Banking operations ...... 16 I.3.1. Dynamics and structure of borrowed funds...... 16 I.3.2. Asset dynamics and structure...... 21 I.4. Financial performance of credit institutions...... 28 II. RUSSIAN BANKING SECTOR RISKS...... 33 II.1. Credit risk...... 33 II.1.1. Loan portfolio quality...... 33 II.1.2. Credit risk concentration. Shareholder and insider credit risks...... 38 II.2. Market risk...... 39 II.2.1. General characteristics of market risk...... 39 II.2.2. Assessment of banking sector vulnerability to interest rate risk...... 39 II.2.3. Assessment of banking sector vulnerability to stock market risk...... 41 II.2.4. Assessment of banking sector vulnerability to foreign exchange risk...... 41 II.3. Liquidity risk...... 41 II.3.1. General characteristics of liquidity risk...... 41 II.3.2. Compliance with required liquidity ratios...... 42 II.3.3. Structure of bank assets and liabilities by maturity...... 43 II.3.4. Dependence on interbank market and interest rate dynamics...... 43 II.3.5. Debt to non-residents...... 45 II.4. Capital adequacy...... 46 II.4.1. Banking sector capital dynamics and structure...... 46 II.4.2. Risk-weighted assets...... 49 II.4.3. Bank capital adequacy...... 51 II.5. Bank management quality...... 53 II.6. Banking sector stress testing ...... 54 2016 BANKING SUPERVISION REPORT 2015 3

III. BANKING REGULATION AND SUPERVISION IN RUSSIA...... 59 III.1. Updating legal and regulatory framework for bank activities in line with international standards...... 59 III.1.1. Updating legal framework for credit institutions...... 59 III.1.2. State registration of credit institutions and banking licensing ...... 59 III.1.3. Credit institution regulation...... 60 III.1.3.1. Banking regulation...... 60 III.1.3.2. On-site inspection of credit institutions...... 62 III.1.4. Methodology of on-going supervision...... 63 III.2. State registration of credit institutions and banking licensing ...... 64 III.3. Off-site supervision and supervisory response...... 65 III.4. Bank inspections...... 67 III.5. Financial rehabilitation and liquidation of credit institutions...... 69 III.6. Countering legalisation (laundering) of criminally obtained incomes and financing of terrorism...... 70 III.7. Central Catalogue of Credit Histories...... 71 III.8. Cooperation with Russia’s banking community...... 72 III.9. Cooperation with international financial organisations, foreign central banks and supervisors...... 73 III.10. Outlook for banking regulation and supervision in Russia...... 74 III.10.1. State registration of credit institutions and banking licensing...... 74 III.10.2. Banking regulation...... 74 III.10.3. Off-site supervision and supervisory response...... 75 III.10.4. On-site inspection...... 76 III.10.5. Household deposit insurance...... 77 III.10.6. Financial rehabilitation of credit institutions...... 77 III.10.7. Countering legalisation (laundering) of criminally obtained incomes and financing of terrorism...... 77 III.11. Bank of Russia supervisors...... 77 IV. APPENDICES...... 79 IV.1. Banking sector stability monitoring and its use in supervision...... 79 IV.2. National payment system...... 79 IV.3. Development of Central Catalogue of Credit Histories...... 81 IV.4. Statistical Appendix...... 82 4 BANKING SUPERVISION REPORT 2015 2016 FOREWORD

FOREWORD

Dear readers, The Bank of Russia is pleased to present you with the latest edition of its Banking Supervision Report. In 2015, the Russian banking sector developed in a challenging environment: gross domestic product con- tracted, inflation rate was high, and corporations and banks experienced on-going difficulties with external funding. On the back of deterioration of the borrowers’ financial standing, banks created additional loan loss pro- visions. Materialisation of interest rate risk during the first six months of the year decreased the interest mar- gin of credit institutions, and as a result banking sector profits showed a considerable decline in 2015 when compared to the previous year. This environment forced the Government of the Russian Federation and the Bank of Russia to implement a set of measures aimed at ensuring systemic stability of the banking sector and maintaining bank lending to key sectors of the economy. Tangible results were achieved through bank recapitalisation via the Deposit Insurance Agency. Measures were taken to develop and strengthen the financial infrastructure. As the international sanctions against some Russian banks were preserved, the resource base of the banking sector in 2015 was mainly expanded at the expense of Russian enterprises and household savings. In 2015, the Bank of Russia continued to develop risk-based bank supervision and carry out banking sector resolution, including sweeping financially unstable organisations incapable of ensuring the safekeeping of creditor and depositor funds. Resolution mechanisms were applied to troubled banks in cooperation with the state corporation Deposit Insurance Agency when economically feasible. Given the specifics of the Russian market, the Bank of Russia continued to introduce international recommendations for banking regulation along with a set of measures to ensure better compliance of the banking regulation in the Russian Federation with recommendations of the Basel Committee on Banking Supervision (BCBS). As a result, the BCBS recognised that the Russian regulatory base in the sphere of banking regulation conforms to the international Basel II, Basel 2.5, and Basel III standards. In 2015, a large-scale work was done so that the Russian Financial Sector Assessment Program (FSAP) conducted by the International Monetary Fund and the World Bank was carried out successfully. The Report provides detailed information on the main areas for further improvement of banking regulations in line with the international best practices. As a megaregulator, the Bank of Russia took measures to elimi- nate regulatory arbitration and improved the competitive environment in financial markets. The readership’s traditional interest in the problems of sustainability of the banking sector resulted in this Report’s focus on global risks and banking sector systemic stability assessment using, inter alia, stress-testing methods. Evaluations have provided evidence that the Russian banking sector has generally adjusted in 2015 to the challenging macroeconomic environment and retained the stability required to meet the demand of the corporate sector and households for banking services.

Elvira Nabiullina Bank of Russia Governor I.1. General economic conditions 2016 BANKING SUPERVISION REPORT 2015 5

I. STATE OF THE RUSSIAN BANKING SECTOR

I.1. General economic mation of the country’s economy in 2015 was accom- panied by a faster-than-expected reduction of imports conditions and exports, negatively affecting commodity prices. On the back of an ongoing global oil glut and lifted sanctions against Iran, the historical volatility of oil prices (MoM) reached 70% in September 2015, the highest I.1.1. Macroeconomics and external since 2009. global risks A number of periods of increased volatility in the Chinese stock market adversely affected the global I.1.1.1. EXTERNAL GLOBAL RISKS investors’ risk appetite. As a result, capital outflow from emerging market economies (EME) increased. In 2015, the increased volatility in the global com- According to the Institute of International Finance (IIF), modity and financial markets was followed by a de- net capital outflow from EMEs in 2015 amounted to cline in global GDP growth rates to 3.1% 1 from 3.4% $735 billion (China accounted for 92%). Under these in 2014. The fundamental factors of high market vola- circumstances as well as against the background of the tility included a more considerable deceleration of the expected US Fed’s rate hike, many EMEs experienced economic growth in China and a lower than expected a devaluation of the national currencies. The consol- growth in the USA. idated index of emerging market currencies against The US GDP growth rate amounted to 2.4% in the US dollar (MSCI EM Currency Index) decreased 2015, same as in the previous year. At the same time, in 2015 by 7%. production indicators deteriorated: ISM Manufacturing Lower oil and other commodity prices had a neg- PMI fell below 50 points in October–December 2015. ative effect on the budget and debt sustainability of Expectations of the US Fed’s rate increase were re- countries with a considerable share of commodity ex- peatedly reconsidered throughout the year, and after ports. As estimated by the IMF, in 2015 the budget defi- the 0.25 pp hike in December 2015 the probability of cit in a number of oil exporting countries (Saudi Arabia, a further upward revision as assessed by the market Iraq, and Venezuela) accounted for 15–20% of GDP. fell to a minimum. The situation in other commodity exporting countries In the Eurozone, the economic growth went slight- (Brazil, South Africa) also got worse. ly up amid persistently accommodative monetary pol- The vulnerability of EMEs is also caused by a suffi- icy: in 2015 Q4, GDP grew by 1.6% YoY, compared cient amount of debt in the corporate sector accumulat- to 1% in 2014. Nevertheless, banking sector delever- ed by many countries over the past years. As estimat- aging continued in the Eurozone (in December 2015, ed by the IMF, the debts of non-financial companies annual growth of lending to non-financial companies and banks of EMEs rose to 74% of GDP in 2014. At equalled 0%, even taking into account the base ef- the same time, a considerable share of debt in a num- fect), and high unemployment and low inflation rate ber of EMEs is a foreign currency-denominated exter- persisted (0.2% at the end of 2015). In addition, con- nal debt (Turkey, Chile, and Peru). cerns that low interest rates will have a negative im- In addition, a slower normalisation of the US Fed’s pact on profits of European banks in the medium term monetary policy enables developing markets to better were on the rise. adjust to new conditions and reduce their debt burden. The economic growth in China continued to slow down: GDP growth in 2015 amounted to 6.9%, compared to 7.3% a year earlier. The structural transfor-

1 IMF estimate, April 2016. 6 BANKING SUPERVISION REPORT 2015 2016 I. STATE OF THE RUSSIAN BANKING SECTOR

I.1.1.2. MACROECONOMICS In general, real disposable income of households fell by 4.3%. Income reduction, tight customer lend- The deterioration of foreign economic environment ing conditions, and households’ shift towards sav- and the effect of bilateral trade and financial sanc- ings resulted in a decrease in consumer demand. tions throughout 2015 had a negative influence on Households’ final consumption expenditures contri the Russian economy. However, this impact faded as buted 5.1 pp to GDP reduction. businesses adjusted to the external shocks. Demand Stronger economic uncertainty, restricted access to for foreign assets from Russian companies and banks global financial markets, high cost of borrowing, and decreased sufficiently, and households gave up sav- more expensive imported investment goods stood be- ing foreign currency in cash. As a result, private cap- hind the 8.4% reduction of fixed capital investment in ital outflow from Russia reduced considerably com- 2015 compared to the previous year. The decline in pared to 2014 despite the net repayment of foreign inventories continued. As a result, in 2015 the nega- debts by the Russian private sector. tive contribution of gross savings in GDP growth in- The international reserves of the Russian creased more than twofold to 3.9 pp compared to the Federation fell in 2015 by $17.1 billion to $368.4 bil- previous year. lion as of 1 January 2016 (in 2014, reserves shrank Higher growth of physical exports of goods and ser- by $124.1 billion). The international reserve adequa- vices in 2015, compared to the previous year, along cy, calculated in accordance with international stand- with a considerable reduction in imports, resulted in ards in months of imports of goods and services that a growth of contribution of net exports to GDP dynam- could be covered by the reserves, was 15.7 months ics from 1.8 to 6.4 pp. (in the previous year, 10.8 months). Exchange rate dynamics was the key inflation driv- As of the beginning of 2016 the foreign debt of the er in 2015. The food embargo imposed in August 2014 Russian Federation stood at $515.8 billion; the for - contributed somewhat to the acceleration of consum- eign debt fell by 14% in 2015 (in the previous year, er price growth. In March 2015, inflation peaked to by 18%). 16.9% YoY. The development of the Russian economy was Starting April 2015, as prices adjusted to the weak- constrained by internal structural factors: high depre- er ruble and following the proactive actions of the Bank ciation of fixed assets and their low renewal, and in- of Russia aimed at normalisation of inflation expec- stitutional restrictions that lowered the potential of la- tations, the consumer price growth showed a down- bour productivity growth. ward trend. Favourable conditions in the global and do- Under these circumstances GDP shrank by 3.7% in mestic food markets tempered the price dynamics. In 2015 as compared to the previous year. Most econom- addition, demand-side restrictions became more and ic activities showed a decline in production of goods more noticeable. As a result, in December 2015 infla- and services. Lower economic activity and exchange tion stood at 12.9% (compared to December 2014). rate fluctuations led to instability of companies’ financial performances. In an effort to adjust to the new environment, or- I.1.2. Financial markets ganisations cut their expenses (including by switching to domestic suppliers) and optimised non-operating in- I.1.2.1. BANK OF RUSSIA OPERATIONS TO come and expenses. At the end of 2015, balanced fi- REGULATE BANKING SECTOR LIQUIDITY nancial result (profit less loss) of organisations1 was 53.1% higher than in 2014. In 2015, the effect of banking sector liquidity fac- Labour cost optimisation was one of the trends tors promoted the inflow of funds to banks during the companies adhered to in order to save money. Real reporting period, which resulted in reduction of cred- wages fell in 2015 by 9.3%, compared to 2014. The it institutions’ debt under Bank of Russia refinancing unemployment rate went up from 5.2% in January to operations. 5.7% in December 2015 (seasonally adjusted). Banks’ demand for liquidity was down following the inflow of budget funds and other operations, the reduc-

1 Excluding small businesses, banks, insurance companies, and budgetary institutions. I.1. General economic conditions 2016 BANKING SUPERVISION REPORT 2015 7

tion of cash in circulation, and the Bank of Russia’s stitutions promoted a substantial reduction of bank interventions in the domestic FX market. debt on such standing facilities after 2015 Q1. Starting One-week repo transactions with the Bank of April 2015, the Bank of Russia reduced the maximum Russia still dominated in managing banking sector li- amount of funds provided through loan auctions se- quidity in 2015. The average debt on these transac- cured by non-marketable assets as the banking sec- tions fell by ₽1.2 trillion, compared to 2014, down to tor’s demand for refinancing decreased. In July 2015, ₽1.4 trillion. The demand for standing repo transac- the Bank of Russia conducted an auction to provide tions to provide liquidity was on average ₽0.1 trillion. 18-month loans, thus having refinanced the debt on In order to offset the considerable excess of liquidi- 12-month loans secured by non-marketable assets. ty demand over liquidity supply, the Bank of Russia Banks’ debt on loans secured by non-marketable conducted on certain days fine-tuning repo auctions collateral extended through auctions in 2015 fell by for 1 to 6 days. The need to make such transactions ₽0.8 trillion and as of 1 January 2016 totalled ₽1.6 tril- arose in March, April, and June 2015. lion. Banks’ debt on other secured loans, including Loans secured by non-marketable assets and guar- standing loans secured by non-marketable assets and antees of credit institutions were also the main refi- guarantees of credit institutions, reduced by ₽1.6 tril- nancing source in 2015. The Bank of Russia continued lion to ₽0.4 trillion. to conduct monthly auctions to provide loans secured Credit institutions showed low demand for ruble li- by non-marketable assets at a floating interest rate for quidity-providing FX swaps in 2015. As of 1 January the period of 3 months. 2016, banks’ debt on these transactions was ₽15 bil- In early 2015, the Bank of Russia gradually in- lion. creased the maximum amount of funds provided As of 1 January 2016, repo transactions account- through loan auctions to replace debts of the bank- ed for about 46% of the total debt of credit institutions ing sector on similar standing facilities. The inflow of on the Bank of Russia’s refinancing operations, while liquidity to the banking sector and the decrease of secured loans accounted for 53%. the burden on the marketable collateral of credit in-

Figure 1.1. Liquidity factors and changes in banking sector debt on Bank of Russia refinancing operations, trillions of rubles

Increase in banking sector debt –3.7 on Bank of Russia refinancing operations 2.9

2.9 Changes in balances of general government accounts with the Bank of Russia 0.6 and other operations*

–0.1 Balance of OFZ operations 0.5 and Federal Treasury deposits

0.4 Bank of Russia interventions –3.4 in the domestic FX market

0.5 Change in cash in circulation –0.3 (outside the Bank of Russia)

0.1 Regulation of credit institutions’ –0.1 required reserves with the Bank of Russia

–5 –4 –3 –2 –1 0 1 2 3 4

2015 2014

* Excluding deposit transactions of the Federal Treasury and OFZ transactions of the Ministry of Finance of Russia, but including interest payments on Bank of Russia refinancing operations and absorbing and the inflow of funds from settlements under USD/RUB sell/buy FX swaps. Source: Bank of Russia.

Спреды процентных ставок к ключевой ставке Банка России и обороты на денежном рынке

2.0 3,200

1.5

1.0 2,400

0.5

0 1,600 pp

–0.5 billions of rubles

–1.0 800

–1.5

–2.0 0 11.11.2015 18.11.2015 27.10.2015 07.07.2015 25.11.2015 03.11.2015 16.12.2015 13.10.2015 14.07.2015 21.07.2015 23.12.2015 30.12.2015 20.10.2015 02.12.2015 09.12.2015 12.01.2015 19.01.2015 11.08.2015 11.03.2015 06.10.2015 28.07.2015 26.01.2015 01.09.2015 01.04.2015 15.04.2015 15.09.2015 18.05.2015 01.06.2015 16.02.2015 18.08.2015 24.02.2015 18.03.2015 16.06.2015 25.05.2015 29.04.2015 29.09.2015 25.08.2015 25.03.2015 02.02.2015 09.02.2015 22.04.2015 23.06.2015 22.09.2015 30.06.2015 08.05.2015 04.08.2015 08.09.2015 08.04.2015 08.06.2015 03.03.2015

Interest rate corridor bounds Spread between MIACR on interbank overnight ruble loans and the Bank of Russia key rate Spread between overnight interdealer repo and the Bank of Russia key rate Spread between the ruble rate on overnight FX swaps and the Bank of Russia key rate Turnover on overnight FX swaps (right-hand scale) Turnover on interdealer overnight ruble repos (right-hand scale) Turnover on interbank overnight ruble loans (right-hand scale)

Source: Bank of Russia.

160 100

90 140 80 120 70 100 60 %

80 50 pp

40 60 30 40 20 20 10

0 0 11.11.2015 27.10.2015 07.07.2015 25.11.2015 13.10.2015 21.07.2015 23.12.2015 30.12.2015 09.12.2015 12.01.2015 11.03.2015 26.01.2015 01.09.2015 15.09.2015 18.08.2015 24.02.2015 25.05.2015 29.09.2015 25.03.2015 09.02.2015 22.04.2015 23.06.2015 08.05.2015 08.04.2015 04.08.2015 08.06.2015

RUB/USD exchange rate change index* Brent price change index* Realised volatility of RUB/USD exchange rate for one month (right-hand scale)

* Values of indicators as of 12 January 2015 are taken as 100%. Source: Thomson Reuters.

3,500 45,000 43,376 3,455 3,470 3,183 3,281 3,000 2,926 41,794 2,807 42,758 40,000 2,500 40,610

38,148 38,431 2,349 2,005 2,000 37,547 37,221 1,708 35,759 35,000 1,500 1,189 1,136 1,108 1,398 1,058 1,012 31,888 978 956 923 1,000 834 733 30,000

500

0 25,000 01.01.07 01.01.08 01.01.09 01.01.10 01.01.11 01.01.12 01.01.13 01.01.14 01.01.15 01.01.16

Number of credit institutions Number of branches of credit institutions in Russia Number of internal structural divisions of credit institutions (right-hand scale)

900 100

773 750 683 95 654 663 623 582 587 600 562 524 90

437

450 % units 367 369 346 337 85 315 300 276 292 291 247 206 80 150

0 75 01.01.07 01.01.08 01.01.09 01.01.10 01.01.11 01.01.12 01.01.13 01.01.14 01.01.15 01.01.16

Number of credit institutions with capital in excess of ₽300 million Of which credit institutions with capital in excess of ₽1 billion Share of credit institutions with capital in excess of ₽300 million in the aggregate positive capital of the banking sector (right-hand scale) Of which credit institutions with capital in excess of ₽1 billion in the aggregate positive capital of the banking sector (right-hand scale)

0.3

0.227 0.223 0.213 0.2

0.144 0.131 0.137 0.114 0.107 0.108 0.107 0.098 0.103 0.1

0 Assets Loans and other Household deposits Capital placements with resident 1 January 2014 non-financial organisations 1 January 2015 1 January 2016

The Herfindahl-Hirschman Index is calculated as the sum of the squared unit weights of credit institutions in the total volume of the banking sector. The index shows the degree of the indicator’s concentration on a scale ranging from 0 to 1. The zero value corresponds to the minimum level of concentration; a value less than 0.10 indicates a low level of concentration; a value between 0.10 and 0.18 represents a medium level of concentration, and a value of more than 0.18 corresponds to a high level of concentration.

20 60 48.9 15.4 15 45 43.8 29.4 10 26.1 30 8.0 8.8

5 15 % 2.6 % per month 0 0 –1.3 –5 –15 Change over 2015: –5.8 corporate deposits and funds +15.6% (+2.7%*) household deposits +25.2% (+16.8%*) –10 –30

01.01.15 01.02.15 01.03.15 01.04.15 01.05.15 01.06.15 01.07.15 01.08.15 01.09.15 01.10.15 01.11.15 01.12.15 01.01.16

Corporate deposits and funds in accounts (except for credit institutions)

Household deposits

Share of FX deposits (right-hand scale)

Share of FX deposits and corporate funds in accounts (right-hand scale)

25 22.5 20.6 19.3 20 18.1 18.5 16.2 16.5 16.9 15 11.8 10.5 10.8 9.6 10.0 10.1 10.4 10.1 10.2 10.1 10 9.1 7.7 8.5 6.6 6.5 6.7 5

0 01.04.14 01.07.14 01.10.2014 01.01.2015 01.04.2015 01.07.2015 01.10.15 01.01.16 More than ₽1 million Up to ₽1 million Total

01.01.2015 01.01.2016 11.9% из них свыше 3000 9.9% До 100 (включительно) 42.6% 29.3% От 100 до 700 35.9% (включительно) От 700 до 1000 52.3% (включительно)

37.5% 8.5% Свыше 1000

8.0%

40.0 160

139 35.0 134 132 140 31.2 124 30.0 120 26.7 103 25.0 25.2 100 87 20.9 19.0 % 20.0 80

20.0 units 67 15.0 60

10.0 9.4 40

5.0 20

0 0 01.01.10 01.01.11 01.01.12 01.01.13 01.01.14 01.01.15 01.01.16

Growth rate of household deposits, % for 12 months Number of banks with deposits exceeding ₽10 billion (right-hand scale)

На 01.01.2015 На 01.01.2016 4.3% 1.8% 6.9% 5.3% 30–90 дней 22.4% 91–180 дней 181 день – 1 год 52.0% 40.9% свыше 1 года

66.4% 8 BANKING SUPERVISION REPORT 2015 2016 I. STATE OF THE RUSSIAN BANKING SECTOR

The demand of credit institutions for the Bank of I.1.2.2. MONEY MARKET Russia’s deposit operations during the most of 2015 remained low. In certain periods, when liquidity sup- Throughout 2015, overnight ruble-denominated ply exceeded demand, the Bank of Russia conduct- money market rates were affected by the structural ed fine-tuning operations in the form of deposit auc- liquidity deficit that decreased during this same period tions for the period of 1 to 6 days. The need for such (see Clause I.1.2.1). In this environment, the Bank of transactions arose in January and February 2015. The Russia reduced limits of one-week ruble repo auctions. average debt of the Bank of Russia on deposit oper- Despite the decline in the banking sector’s demand ations in 2015 was ₽0.3 trillion, which is ₽0.2 trillion for refinancing, weekly Bank of Russia ruble repo auc- higher against the previous year. tions to raise liquidity remained highly demanded pri- The Bank of Russia mostly uses its key monetary marily by small banks whose borrowing possibilities policy instruments to support price stability. However, in the money market were limited. As a result, cut-off given the economic environment of 2015, the Bank rates at one-week Bank of Russia repo auctions went of Russia also contributed to implementation of so- up. Against this background, credit institutions showed cial and economic policies. For instance, in order to high demand for ruble liquidity in the money market, support the development of certain economic seg- which in turn underpinned overnight ruble-denominat- ments restrained by structural factors, the Bank of ed money market rates mainly in the upper range of Russia provided funds to credit institutions through the interest rate corridor. special-purpose refinancing mechanisms along with Money market rates were also affected by the ele- the use of monetary policy instruments. vated demand for FX liquidity observed in certain periods in 2015. In this context, the supply of ruble liquid- Table 1.1. Changes in the system of monetary ity in the FX swap market went up resulting in a drop policy instruments and other measures taken in ruble-denominated rates in this segment of the mo by the Bank of Russia in 2015 ney market and thus putting downward pressure on The Bank of Russia developed a mechanisms to overnight ruble-denominated interbank and repo rates. issue loans secured by guarantees of the JSC March Russian Small and Medium Business Corporation for a period of up to 3 years at the rate of 6.5% p.a. I.1.2.3. FOREIGN EXCHANGE MARKET The Bank of Russia supplemented its monetary policy instruments with auction-based fine-tuning USD/RUB and EUR/RUB sell/buy FX swaps for the During 2015, economic agents were adapting to June period of 1 to 2 days. These auctions are conducted a floating exchange rate regime as well as an altered in accordance with Bank of Russia decision along with fine-tuning repo auctions foreign economic environment. In February–May 2015, The Bank of Russia increased the averaging ratio ruble appreciation was driven by the growth in world oil applied by banks to calculate the average value of prices. In addition, the ruble was backed by the Bank required reserves from 0.7 to 0.8. For non-bank September credit institutions which carry out deposit-taking of Russia’s monetary policy, including a key rate hike and lending, the ratio was raised from 0.7 to 1.0 to 17% p.a. at the end of 2014 and an introduction The Bank of Russia Board of Directors approved of instruments for providing credit institutions with fo Bank of Russia Regulation No. 507-P, dated 1 December 2015, ‘On Credit Institutions’ Required reign currency on a repayable basis. Reserves’, which implements previously adopted Since summer 2015, the ruble was depreciating resolutions on changes to the approaches to the mechanism for averaging required reserves. against most advanced economy currencies follow- December The stated measures to change the schedule of periods for averaging required reserves and ing the drop in oil prices and increasing uncertainty calculating the average value of balances on the in global financial markets due to the slowdown in the correspondent accounts with the Bank of Russia during the averaging period became effective from Chinese economic growth. This made risky assets, in- January 2016 cluding ruble-denominated ones, less attractive for fo The Bank of Russia developed a mechanism for reign investors. The expected rate hike by the US Fed issuing loans secured by the pledge of receivables December on loans to leasing companies for the period of up also acted against the ruble, as well as against many to 3 years at the rate of 9.00% p.a. other world currencies. The FX rate volatility was gradually declining throughout 2015. On average, during 2015 the rea lised volatility of USD/RUB exchange rate was about 26 pp, which is much lower than values observed in I.1. General economic conditions 2016 BANKING SUPERVISION REPORT 2015 9 Increase in banking sector debt –3.7 on Bank of Russia refinancing operations 2.9 December 2014 when it was over 70 pp. At the same expectations and launch of monetary policy normalisa- 2.9 Changes in balances of general government time, the volatility of the ruble exchange rate remained tion by the US Fed.accounts At the with same the Bank time, of Russia comments from 0.6 rather high compared to advanced economy curren- the Bank of Russia,and other published operations* at the end of October cies, which can be linked to a persistently high vola- and mid-December in press releases about its will- –0.1 Balance of OFZ operations tility of oil prices. 0.5 ingness to renewand the Federal key Treasury rate cuts deposits at the upcoming meetings of the Board of Directors as inflation deceler- I.1.2.4. CORPORATE SECURITIES MARKET0.4 ates, restricted theBank effect of Russia of interventionsthe said negative factors. –3.4 Volatility indicatorsin the domestic of stock FX market market indices fell In 2015, the situation in the corporate securities in the domestic stock market compared to the end market improved compared to the end of 0.52014. In of 2014. The RTSChange index in cash (calculated in circulation on the basis of –0.3 (outside the Bank of Russia) January–May 2015, debt securities and equity securi- share prices denominated in US dollars) followed the ties quotations rose following the implemented and ex- ruble exchange rate during 2015 and fell by 4.3% 0.1 Regulation of credit institutions’ pected monetary policy easing by the–0.1 Bank of Russia. in the reporting requiredperiod. reserves The MICEXwith the Bank index of Russia (calculat- However, the recovery of volume and price values of ed on the basis of share prices denominated in ru- –5the Russian–4 corporate–3 –2securities–1 market0 was checked1 2 bles1)3 fluctuated4 within a broad horizontal band for by2015 an increased 2014instability in global financial and com- most of the reporting period and in the end of 2015 modity markets in the second half of 2015, ruble de- went up by 26.1%. At the same time, in February and * Excluding deposit transactions of the Federal Treasury and OFZ transactions of the Ministry of Finance of Russia, but including interest paymentspreciation, on Bank and of Russiaa slowdown refinancing in operations the domestic and absorbing economic and the inflowNovember of funds from 2015 settlements the MICEXunder USD/RUB index sell/buy reached FX swaps. its pre-re- activity along with aggravations in geopolitical tension, cession maximum of 2008. Stock market capitalisation

Спреды процентных ставок к ключевой ставке Банка России и Figure 1.2. Spreads between interestоб ratesорот andы н theа д Bankене жofн Russiaом ры keyнк еrate and money market turnover

2.0 3,200

1.5

1.0 2,400

0.5

0 1,600 pp

–0.5 billions of rubles

–1.0 800

–1.5

Source: Bank of Russia.

1 Lists of securities included in the MICEX and RTS index calculation base are the same.

160 100

90 140 80 120 70 100 60 %

80 50 pp

40 60 30 40 20 20 10

RUB/USD exchange rate change index* Brent price change index* Realised volatility of RUB/USD exchange rate for one month (right-hand scale)

* Values of indicators as of 12 January 2015 are taken as 100%. Source: Thomson Reuters.

3,500 45,000 43,376 3,455 3,470 3,183 3,281 3,000 2,926 41,794 2,807 42,758 40,000 2,500 40,610

38,148 38,431 2,349 2,005 2,000 37,547 37,221 1,708 35,759 35,000 1,500 1,189 1,136 1,108 1,398 1,058 1,012 31,888 978 956 923 1,000 834 733 30,000

500

0 25,000 01.01.07 01.01.08 01.01.09 01.01.10 01.01.11 01.01.12 01.01.13 01.01.14 01.01.15 01.01.16

Number of credit institutions Number of branches of credit institutions in Russia Number of internal structural divisions of credit institutions (right-hand scale)

900 100

773 750 683 95 654 663 623 582 587 600 562 524 90

437

450 % units 367 369 346 337 85 315 300 276 292 291 247 206 80 150

0 75 01.01.07 01.01.08 01.01.09 01.01.10 01.01.11 01.01.12 01.01.13 01.01.14 01.01.15 01.01.16

0.3

0.227 0.223 0.213 0.2

0.144 0.131 0.137 0.114 0.107 0.108 0.107 0.098 0.103 0.1

0 Assets Loans and other Household deposits Capital placements with resident 1 January 2014 non-financial organisations 1 January 2015 1 January 2016

20 60 48.9 15.4 15 45 43.8 29.4 10 26.1 30 8.0 8.8

5 15 % 2.6 % per month 0 0 –1.3 –5 –15 Change over 2015: –5.8 corporate deposits and funds +15.6% (+2.7%*) household deposits +25.2% (+16.8%*) –10 –30

01.01.15 01.02.15 01.03.15 01.04.15 01.05.15 01.06.15 01.07.15 01.08.15 01.09.15 01.10.15 01.11.15 01.12.15 01.01.16

Corporate deposits and funds in accounts (except for credit institutions)

Household deposits

Share of FX deposits (right-hand scale)

Share of FX deposits and corporate funds in accounts (right-hand scale)

25 22.5 20.6 19.3 20 18.1 18.5 16.2 16.5 16.9 15 11.8 10.5 10.8 9.6 10.0 10.1 10.4 10.1 10.2 10.1 10 9.1 7.7 8.5 6.6 6.5 6.7 5

0 01.04.14 01.07.14 01.10.2014 01.01.2015 01.04.2015 01.07.2015 01.10.15 01.01.16 More than ₽1 million Up to ₽1 million Total

37.5% 8.5% Свыше 1000

8.0%

40.0 160

139 35.0 134 132 140 31.2 124 30.0 120 26.7 103 25.0 25.2 100 87 20.9 19.0 % 20.0 80

20.0 units 67 15.0 60

10.0 9.4 40

5.0 20

0 0 01.01.10 01.01.11 01.01.12 01.01.13 01.01.14 01.01.15 01.01.16

Growth rate of household deposits, % for 12 months Number of banks with deposits exceeding ₽10 billion (right-hand scale)

На 01.01.2015 На 01.01.2016 4.3% 1.8% 6.9% 5.3% 30–90 дней 22.4% 91–180 дней 181 день – 1 год 52.0% 40.9% свыше 1 года

66.4% Increase in banking sector debt –3.7 on Bank of Russia refinancing operations 2.9

2.9 Changes in balances of general government accounts with the Bank of Russia 0.6 and other operations*

–0.1 Balance of OFZ operations 0.5 and Federal Treasury deposits

0.4 Bank of Russia interventions –3.4 in the domestic FX market

0.5 Change in cash in circulation –0.3 (outside the Bank of Russia)

0.1 Regulation of credit institutions’ –0.1 required reserves with the Bank of Russia

–5 –4 –3 –2 –1 0 1 2 3 4

2015 2014

Спреды процентных ставок к ключевой ставке Банка России и обороты на денежном рынке

2.0 3,200

1.5

1.0 2,400

0.5

0 1,600 pp

–0.5 billions of rubles

–1.0 800

–1.5

–2.0 0 11.11.2015 18.11.2015 27.10.2015 07.07.2015 25.11.2015 03.11.2015 16.12.2015 13.10.2015 14.07.2015 21.07.2015 23.12.2015 30.12.2015 20.10.2015 02.12.2015 09.12.2015 12.01.2015 19.01.2015 11.08.2015 06.10.2015 11.03.2015 28.07.2015 26.01.2015 01.09.2015 15.09.2015 01.04.2015 15.04.2015 18.05.2015 01.06.2015 16.02.2015 18.08.2015 24.02.2015 18.03.2015 16.06.2015 25.05.2015 29.09.2015 29.04.2015 25.08.2015 25.03.2015 02.02.2015 23.06.2015 22.09.2015 22.04.2015 09.02.2015 30.06.2015 08.05.2015 08.09.2015 04.08.2015 08.04.2015 08.06.2015 03.03.2015

Source: Bank of Russia. 10 BANKING SUPERVISION REPORT 2015 2016 I. STATE OF THE RUSSIAN BANKING SECTOR

Figure 1.3. Ruble exchange rate dynamics and volatility

160 100

90 140 80 120 70 100 60 %

80 50 pp

40 60 30 40 20 20 10

RUB/USD exchange rate change index* Brent price change index* Realised volatility of RUB/USD exchange rate for one month (right-hand scale)

* Values of indicators as of 12 January 2015 are taken as 100%. Source: Thomson Reuters.

on the MICEX Stock Exchange increased by 24.2% tutions accounted for 33% in the structure of secon to ₽28.8 trillion. The turnover of the secondary trad- dary trading. ing in shares and share depositary receipts on the Corporate bond yield in the secondary market re- MICEX Stock Exchange reduced in 2015 to ₽9.2 tril- duced over the reporting period by 408 bp to 11.6% lion against ₽10.1 trillion in 2014. Credit institutions’ p.a. at the end of 2015, with the average yield ex- 3,500 45,000 shares accounted for about 35% of the total second- ceeding in 2015 43,376a similar 2014 indicator by 272 bp 3,455 3,470 3,183 ary trading turnover3,281 on the MICEX Stock Exchange.2,926 and amounting to 13.1% p.a.41,794 3,000 2,807 Issuing activity in the domestic corporate bond mar- Institutional42,758 aspects of securities market de- 40,000 ket increased2,500 compared to 2014. In general, corporate velopment.40,610 In 2015, the number of infrastructures bond issues in the total of ₽1,830 billion at par val- in the Russian financial market increased from 12 to 38,431 2,349 ue were placed during 2015, of which38,148 bonds of cred- 13. At the same time,2,005 the number of credit and non- 2,000 37,547 37,221 1,708 it institutions accounted for35,759 23% of the total offering. bank institutions licensed as professional35,000 securities The portfolio1,500 of corporate bonds traded in the do- market participants tended to go down: their number 1,189 mestic market expanded1,136 in the1,108 reporting period by fell from 1,066 as of 1 January 20151,398 to 875 as of 1,058 1,012 31,888 1 978 956 923 21.8% to1,000 ₽8.1 trillion at par value compared to the 31 December 2015. Among834 other things, the number 733 30,000 end of 2014. Sectorwise, bank securities remained of broker licences decreased by 171 to 632, dealer li- the largest500 segment of the portfolio, but its share re- cences by 163 to 651, trustee licences by 169 to 541, duced from 31% at the end of 2014 to 26% at the and depository licences by 70 to 502 during the said end of 2015.0 period. The number of registrar licences decreased25,000 by 01.01.07 01.01.08 01.01.09 01.01.10 01.01.11 01.01.12 01.01.13 01.01.14 01.01.15 01.01.16 In 2015, the secondary trading in corporate bonds 1 to 39 in this period, and the number of clearing or- on the MICEX StockNumber Exchange of credit institutions increased by 4.4% to ganisations remained unchanged at 5. The number of ₽4.5 trillion comparedNumber to of 2014. branches Bonds of credit ofinstitutions credit ininsti Russia- trade organisers (exchanges) grew from 8 to 9. At the Number of internal structural divisions of credit institutions (right-hand scale)

1 According to Cbonds.ru.

900 100

773 750 683 95 654 663 623 582 587 600 562 524 90

437

450 % units 367 369 346 337 85 315 300 276 292 291 247 206 80 150

0 75 01.01.07 01.01.08 01.01.09 01.01.10 01.01.11 01.01.12 01.01.13 01.01.14 01.01.15 01.01.16

0.3

0.227 0.223 0.213 0.2

0.144 0.131 0.137 0.114 0.107 0.108 0.107 0.098 0.103 0.1

0 Assets Loans and other Household deposits Capital placements with resident 1 January 2014 non-financial organisations 1 January 2015 1 January 2016

20 60 48.9 15.4 15 45 43.8 29.4 10 26.1 30 8.0 8.8

5 15 % 2.6 % per month 0 0 –1.3 –5 –15 Change over 2015: –5.8 corporate deposits and funds +15.6% (+2.7%*) household deposits +25.2% (+16.8%*) –10 –30

01.01.15 01.02.15 01.03.15 01.04.15 01.05.15 01.06.15 01.07.15 01.08.15 01.09.15 01.10.15 01.11.15 01.12.15 01.01.16

Corporate deposits and funds in accounts (except for credit institutions)

Household deposits

Share of FX deposits (right-hand scale)

Share of FX deposits and corporate funds in accounts (right-hand scale)

25 22.5 20.6 19.3 20 18.1 18.5 16.2 16.5 16.9 15 11.8 10.5 10.8 9.6 10.0 10.1 10.4 10.1 10.2 10.1 10 9.1 7.7 8.5 6.6 6.5 6.7 5

0 01.04.14 01.07.14 01.10.2014 01.01.2015 01.04.2015 01.07.2015 01.10.15 01.01.16 More than ₽1 million Up to ₽1 million Total

37.5% 8.5% Свыше 1000

8.0%

40.0 160

139 35.0 134 132 140 31.2 124 30.0 120 26.7 103 25.0 25.2 100 87 20.9 19.0 % 20.0 80

20.0 units 67 15.0 60

10.0 9.4 40

5.0 20

0 0 01.01.10 01.01.11 01.01.12 01.01.13 01.01.14 01.01.15 01.01.16

Growth rate of household deposits, % for 12 months Number of banks with deposits exceeding ₽10 billion (right-hand scale)

На 01.01.2015 На 01.01.2016 4.3% 1.8% 6.9% 5.3% 30–90 дней 22.4% 91–180 дней 181 день – 1 год 52.0% 40.9% свыше 1 года

66.4% I.2. Institutional aspects of banking sector development 2016 BANKING SUPERVISION REPORT 2015 11

same time, more than half of professional securities Loans to the economy (to non-financial organi- market participants – dealers, brokers, and deposito- sations and households) also showed positive dy- ries, as well as more than one-third of trustees held namics, but only due to the increase in the corporate a banking licence. loan portfolio. The aggregate loans to the economy to Throughout 2015, the Bank of Russia developed GDP ratio increased over the reporting year by 2.0 pp financial market regulation. In particular, licensing re- to 54.4%. quirements and terms of professional activities in the Thereby, at the end of 2015 two of the three tar- securities market were improved, the approach to trus- get indicators set by the Banking Sector Development tee activities regulation was changed (now trustee’s Strategy of the Russian Federation through 2015 were actions shall be guided by the customer’s risk profile), attained: assets to GDP ratio and loans to non-finan- measures to regulate the forex market were taken, and cial organisations and household loans to GDP ratio. requirements for the disclosure of information by pro- At the same time, the target capital to GDP ratio (14– fessional securities market participants were defined. 15%) has not yet been reached. The Bank of Russia also reconsidered regulations on financial market accounting institutions (securities rec- onciliation procedure and securities account mainte- nance procedures were updated, conditions for su- pervising depositories’ compliance with the account I.2. Institutional aspects balance were created) and introduced a risk-based approach to determining the amount of trustee capi- of banking sector development tal. Measures to develop the commodities market were adopted (grain exchange market was launched, gas exchange market was improved), and requirements aimed at the reduction of clearing risks were worked I.2.1. Quantitative characteristics out. The project on upgrading the system of financial of the banking sector market specialist certification was launched. In 2015, the recent trend towards reduction in the number of operating credit institutions persisted. It I.1.3. Banking sector macroeconomic went down by 101 to 733 during the reporting year performance (Figure 1.4). In 2015, credit institutions continued to optimise In 2015, most key indicators characterising the role their internal structural divisions. Their total number of the banking sector in the economy showed posi- shrank by 4,573 units (10.9%), and as of 1 January tive dynamics, but such changes are largely explained 2016 totalled 37,221 (41,794 as of 1 January 2015). by the currency revaluation. Banking sector assets At the same time, the number of additional offices fell to GDP ratio increased over the year from 99.6% to from 23,301 to 21,836; cash and credit offices – from 102.7%. 2,289 to 1,853; external cash desks – from 6,735 to The banking sector capital to GDP ratio add- 5,696; and operation offices – from 9,273 to 7,609. ed 0.9 pp during the year and as of 1 January 2016 At the same time, the number of mobile banking ve- amounted to 11.1%. The banking sector capital was hicles increased from 196 to 227. increased on the back of additional capitalisation of The said changes resulted in a drop in the num- certain banks through state funding. ber of internal structural divisions per 100 thousand The role of household deposits, which showed people from 28.6 as of the end of 2014 to 25.4 as of a considerable growth in 2015, in the resource base the end of 2015. of credit institutions gained in importance. As a result, household deposits to GDP ratio went up by 4.4 pp (from 23.8% as of 1 January 2015 to 28.7% as of I.2.2. Development of regional banking 1 January 2016). Funds attracted from companies showed a moderate growth, and with regard to GDP In 2015, most Russian regions observed a reduc- they increased by 3.1 pp to 35.2%. tion in the number of operating credit institutions: the Increase in banking sector debt –3.7 on Bank of Russia refinancing operations 2.9

2.9 Changes in balances of general government accounts with the Bank of Russia 0.6 and other operations*

–0.1 Balance of OFZ operations 0.5 and Federal Treasury deposits

0.4 Bank of Russia interventions –3.4 in the domestic FX market

0.5 Change in cash in circulation –0.3 (outside the Bank of Russia)

0.1 Regulation of credit institutions’ –0.1 required reserves with the Bank of Russia

–5 –4 –3 –2 –1 0 1 2 3 4

2015 2014

Спреды процентных ставок к ключевой ставке Банка России и обороты на денежном рынке

2.0 3,200

1.5

1.0 2,400

0.5

0 1,600 pp

–0.5 billions of rubles

–1.0 800

–1.5

–2.0 0 11.11.2015 18.11.2015 27.10.2015 07.07.2015 25.11.2015 03.11.2015 13.10.2015 16.12.2015 14.07.2015 21.07.2015 23.12.2015 30.12.2015 20.10.2015 02.12.2015 09.12.2015 12.01.2015 19.01.2015 11.08.2015 11.03.2015 06.10.2015 28.07.2015 26.01.2015 01.09.2015 01.04.2015 15.04.2015 15.09.2015 18.05.2015 01.06.2015 16.02.2015 18.08.2015 24.02.2015 18.03.2015 16.06.2015 25.05.2015 29.04.2015 29.09.2015 25.08.2015 25.03.2015 02.02.2015 09.02.2015 22.04.2015 23.06.2015 22.09.2015 30.06.2015 08.05.2015 04.08.2015 08.09.2015 08.04.2015 08.06.2015 03.03.2015

Source: Bank of Russia.

160 100

90 140 80 120 70 100 60 %

80 50 pp

40 60 30 40 20 20 10

RUB/USD exchange rate change index* Brent price change index* Realised volatility of RUB/USD exchange rate for one month (right-hand scale)

* Values of indicators as of 12 January 2015 are taken as 100%. Source: Thomson Reuters.

12 BANKING SUPERVISION REPORT 2015 2016 I. STATE OF THE RUSSIAN BANKING SECTOR

Figure 1.4. Number of credit institutions and their branches

3,500 45,000 43,376 3,455 3,470 3,183 3,281 3,000 2,926 41,794 2,807 42,758 40,000 2,500 40,610

38,148 38,431 2,349 2,005 2,000 37,547 37,221 1,708 35,759 35,000 1,500 1,189 1,136 1,108 1,398 1,058 1,012 31,888 978 956 923 1,000 834 733 30,000

500

0 25,000 01.01.07 01.01.08 01.01.09 01.01.10 01.01.11 01.01.12 01.01.13 01.01.14 01.01.15 01.01.16

Number of credit institutions Number of branches of credit institutions in Russia Number of internal structural divisions of credit institutions (right-hand scale)

number of regional banks1 reduced from 375 to 341. District, including the Chechen Republic, as well as But regional banks saw higher asset growth (16.1%) the Republic of Dagestan and the Ingush Republic than the banking sector as a whole (6.9%). As a re- (see Table 6.2 in the Statistical Appendix). sult, the share of regional banks in the banking sec- The institutional density of banking services 3 in tor’s aggregate assets increased from 8.6% to 9.3% at the Crimea Federal District amounted to 0.93, which the end of the year. In contrast, capital growth of re- is higher than the value of the index in a number of gional banks fell behind the corresponding indicator in Russian regions. the banking sector in 2015: 0.2% against 13.6%. The decline in regional banks’ profits (67.4% and 77.8% respectively) was more substantive than in the bank- I.2.3. Banking services concentration 900 100 ing sector as a whole.

As of the end of 2015, the aggregate index of the In 2015, the growth of 773indicators characterising density750 of banking services2 in most regions did not banking services concentration persisted. The share 683 95 654 663 change substantially. Banking services are still most of623 the 200 credit institutions largest by assets in the 582 587 accessible600 in the Central Federal562 District (especially aggregate assets of the banking sector for the report- in Moscow), followed524 by the North-Western Federal ing period increased, and at the end of the 90year was District where437 banking services are highly accessible equal to 97.2% (at the end of 2014, 96.5%). The rela-

450 % units in Saint Petersburg. The Urals Federal District saw an tive share of the top five367 banks369 grew during 2015 from 346 337 85 increase in this indicator as of the end of 2015. 53.6%315 to 54.1%. This dynamics is generally explained 300 276 292 291 Other regions, except247 for the Siberian Federal by licence revocations from small banks. District with a flat206 index value, saw a slight decrease Currently, all credit institutions comply with the 80 in this 150value in 2015. The minimum value of the ag- requirements of Federal Law No. 391-FZ, dated gregate index of the density of banking services in the 3 December 2011, ‘On Amending the Federal Law regions is0 observed in the North Caucasian Federal ‘On Banks and Banking Activities’ on increasing75 the 01.01.07 01.01.08 01.01.09 01.01.10 01.01.11 01.01.12 01.01.13 01.01.14 01.01.15 01.01.16

1 Regional banks areNumber banks of registered credit institutions outside with Moscow capital in and excess the of Moscow ₽300 million Region. 2 The methodology usedOf which to calculatecredit institutions the index with iscapital explained in excess in ofSection ₽1 billion IV of this Report. 3 The methodology usedShare to of calculate credit institutions the index with is capital explained in excess in Section of ₽300 millionIV of this Report. The calculation of the index takes into account the data on bank branchesin the aggregate registered positive both capital in the of Crimeathe banking Federal sector District(right-hand and scale) in other regions of the Russian Federation. Of which credit institutions with capital in excess of ₽1 billion in the aggregate positive capital of the banking sector (right-hand scale)