The Central Bank of Russia (CBR) unveiled its new ‘Guidelines for Development of Russia’s Financial Market and Action Plan’ at the XXV International Financial Congress in St. Petersburg, Russia on 1 July.

As a highlight of the conference, panelists from across the globe were in invited to provide perspectives on CBR’s strategy in a high level panel chaired by CBR Governor, Elvira Nabiullina.  Notable panel participants included Mr. Anton Siluanov, Minister of Finance of the Russian Federation and AFI Executive Director Alfred Hannig. The remainder of the panel included Mr. Vladimir Tosik, Deputy Governor from the Czech National Bank along with senior leaders from Russia’s public and private sectors.

In his presentation, Mr. Hannig provided an international perspective, highlighting how financial inclusion’s global profile has increased dramatically since 2008 thanks, in part, to the efforts of AFI members such as CBR. He noted there is now a global consensus that advancing financial inclusion is vital to financial stability, growth and to the development of healthy financial markets. As such, Mr. Hannig argued, financial inclusion policy can bring benefits to all segments of society, rich and poor.

Mr. Hannig congratulated Russia for its overall approach to financial inclusion as part of a broader effort to enable the sound and safe provision of digital financial services through alternative channels in addition to traditional banking services.

“The Central Bank of Russia’s position on agent banking, shadow banking, and regulation of NBFIs, reflects the complex challenges that policymakers are facing today. CBR’s Policy Guidelines and Action Plan provide invaluable insights on appropriate regulatory responses to the digitization of financial services”, said Mr. Hannig.

Mr. Hannig also praised CBR for its active participation in the AFI network and stressed the importance and benefits of the Networks’ continuous exchange of financial inclusion ideas and experiences, locally, regionally and internationally.  Special note was also made of CBRs decision to include members of the private sector in the conference, and Mr. Hannig underlined the potential of open dialogue and cooperation between all financial inclusion actors.

Speaking after the session, Central Bank of Russia Deputy Governor, and AFI Board Member, Vladimir Chistyukhin, acknowledged the positive impact that CBR’s membership in AFI had made on the Guidelines saying; “AFI has provided unique and valuable input to the review and discussion of CBR’s Guidelines for the Development of Russia’s Financial Market 2016-2018 document, showing that CBR’s recommendations for financial inclusion, which have an important role in CBR’s strategy are well aligned with best global practices of the AFI network.”

The CBR Policy Guidelines span multiple sectors and takes into account Russia’s unique market conditions as well as international good practices. For the first time, a focus on financial inclusion has been fully integrated into CBR’s policy guidelines with a significant focus dedicated to consumer protection, financial literacy, promotion and proportionate regulation of new technologies, appropriate regulation of the non-bank sector. The Action Plan also identifies other key financial inclusion trends in which should be carefully monitored. These include, Information Disclosure, Harmonization of National Standards, Risk Management, Automation of Services, Reaching Rural/Remote Populations, and Digital Authentication and Identification.

Because financial education and consumer protection have been recognized by CBR as vital elements in the development of Russia’s financial market, CBR announced during the conference that it would join and benefit from peer learning within AFI’s CEMC WG.  CBR currently chairs AFI’s DFS WG as well as the Global Standards Proportionality WG’s Sub-Group on Shadow Banking.