An autonomous fund to support the financial sector may be created in the Russian Federation

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AK&M 04 August 2022 15:12

The Bank of Russia does not exclude that systemic support of the financial sector may be required. For these purposes, the Central Bank may consider the feasibility of creating an autonomous fund to support the financial banking sector, formed by deductions from financial intermediaries. This is reported in the report of the regulator "Financial market: new challenges in modern conditions".

Support will be provided only if the losses of financial organizations are related to force majeure circumstances, and are not the result of previously used risky business models.

The support measures should not cover the losses incurred as a result of the ineffective policy of the owners of individual financial institutions, thereby worsening the competitive position of those financial intermediaries who used a more prudent and balanced approach to risk management, the Central Bank emphasizes.