The Macroprudential Policy Framework in Russia

Abstract

The note discusses the main features of Russia’s current macroprudential policy framework. In particular, it describes the Central Bank of the Russian Federation’s legal mandate to ensure the stable functioning of the financial markets, explains the interagency coordination between Russian authorities, and outlines the functions of National Council on Ensuring Financial Stability as a high-level inter-agency advisory body on financial stability issues, which serves as an effective platform for policy coordination.

The note focuses on the practical aspects of the the central bank’s financial stability objectives and powers, detailing the Bank of Russia internal structures and procedures for the formulation and implementation of macroprudential policy, and for communication and transparency issues. The central bank’s experience of using macroprudential instruments to curb systemic risks is reviewed, with practical examples of how financial stability issues were addressed via macroprudential policy measures, together with details of the Bank’s plans for further macroprudential policy development.

Full Publication: Macroprudential Frameworks, Implementation and Relationship with Other Policies

Keywords: macroprudential policy, macroeconomic and financial stability, financial system regulation, macroprudential instruments, systemic risks, banking system

JEL Classification: E44, E58, E60, E61