07 Cross-sectoral discussions

Succession and continuity of capital

The generation of entrepreneurs who created successful companies during the period of transition to market economy is starting to leave the stage.

Who will replace the founders and current owners of major banks and financial institutions: new owners, successors or hired managers?

How can one ensure a seamless transition from old owners of successful financial businesses to the new ones, while bringing the tech aspects of its operations to a new level in the interests of depositors and consumers, and avoiding any destabilisation and damage to the stakeholders’ interests?

Payments driving the development of ecosystems. Is there any room for competition?

The role of payments seems to go beyond that of a settlement tool: they are increasingly becoming a core product for launching and developing ecosystems.

What can new payment mechanisms provide to consumers and the market? Why are ecosystems more attractive than traditional banking services?

Cyber resilience, information security and cyber culture

These days the operation of financial institutions dependent on information technologies, which makes cyber resilience and information security key factors of trouble-free functioning.

The session will cover the following topics:
– International experience in cyber resilience regulating.
– Cyber exercises: stress tests in new conditions.
– How service providers (telecom operators, partners and software providers) impact on financial institutions’ cyber resilience. Cyber risks mitigation.
– Customer interests as core element of cyber resilience. Is it real to raise the cyber culture level (if necessary)?

Corporate governance: merely a regulator’s requirement or an essential precondition for successful operations? Corporate governance: a regulator’s whim or an essential precondition for successful operations?

Financial market regulators have long been paying attention to the issues of corporate governance in financial institutions. A successful corporate governance model for a bank, an insurance undertaking or a pension fund must centre around the interests of consumers, depositors and lenders.

Today, regulators do not merely establish prudential regulations, but get increasingly involved in financial institutions’ corporate governance policies.

What may be peculiarities of the corporate governance requirements in different financial market sectors? In which aspects of corporate governance “soft” regulation is enough, and when legislative requirements, restrictions and monitoring on the part of the regulator are required trick?

Can regulatory burden be reduced any further?

Last year, the Bank of Russia started working on optimising the regulatory burden over the financial market by eliminating outdated or excessive requirements, reducing the volume of reporting to be submitted, shifting towards data-centric reporting, etc.

The participants will discuss the timeline for the changes, market participants’ expectations, and the potential for such reforms of the regulatory framework.

Offering complex financial instruments to retail investors

At times, it is difficult to fully grasp all the parameters and risks of financial instruments, which may distort retail investors’ expectations. Making a rational investment decision requires a toolkit for providing proper information, especially with regard to products that are hard to understand and novel for most retail investors.

For instance, many developed economies use the KID (key information document) format for such purposes.

The session will also discuss establishing requirements for providing information through regulations and self-regulating organisations’ standards.

Sustainable development principles and financial market: what’s next?

Short-termism orientation in capital markets is a factor hindering long-term sustainable economic development. That’s why governments, regulators and companies switch to long-term planning horizon and development of long-term finance segment.

Sustainable development is on the agenda of economies, becoming the basis of financial strategies.

The participants will discuss green finance prospects, ESG-factors integration to the policies of institutional investors as well as integration of the principles of quality investment in infrastructure (QII) into infrastructure financing. Particular attention will be paid to climate risks – new threat to the financial stability.

Main trends in financing and supporting SMEs

Development of SMEs is highly important for economic growth and social security, and the Bank of Russia implements measures to support the financing of SMEs and participates in government SME support programmes.

The session will touch upon both accomplishments and challenges in developing an effective system of financing businesses as well as ways of making government SME support measures more effective.

The following areas of financing SMEs will be covered: bank lending, microloans, stock market, leasing and crowdfunding.