In addition to such macroprudential buffers, we would like to have an opportunity to restrict highrisk lending not by raising the requirements for banks’ capital, as banks need capital for lending and, moreover, it is distributed unevenly across the system. These buffers are very efficient and might become a problem for some banks, whereas they are wholly useless for other banks and do not influence lending growth paces. We have prepared proposals for the Bank of Russia to be entitled, just as regulators in many other countries, to set direct quantitative limits for consumer loans. The relevant draft law has been submitted to the State Duma. We also hope for your support in this regard. In our opinion, this measure is absolutely essential and beneficial in all respects. Considering the current state of the banking system and our policy aimed at preventing the accumulation of systemic risks (this is an area we are closely monitoring to avoid a build-up of systemic risks in the financial area, and the financial area is an infrastructure, the circulatory system of the entire economy, as it is often called), the banking sector will maintain its stability further on and continue to provide lending to the economy. This makes it possible for us to start discussing the next step in the protection of depositors’ rights: jointly with the Deposit Insurance Agency, we are studying opportunities for expanding insurance for not only individuals and small businesses, but possibly medium-sized enterprises as well, and also social, educational and healthcare organisations.

Also important are the requirements for complaints to be handled promptly by financial institutions. Ladies and Gentlemen, The Malaysian experience Let me briefly take a moment to share with you the experience of Malaysia in developing an enabling environment to promote financial literacy. For several decades, Malaysia has made significant economic progress. The economy grew by an average of 7% per year, while the per capita income has increased from USD 300 in 1970 to USD 4,236 in 2004. From a commodity-based economy, Malaysia now has a highly diversified economy, with significant contribution from the manufacturing and services sectors. Women account for about half of Malaysian population, and have played an important role in this economic transformation process. Women account for about 45% of the labour force, with increasing representation at the professional, managerial and technical levels. Such progress is achieved following increased educational opportunities that have been made available to women. Female primary and secondary students account for half of total enrolment, while at public universities, female students account for 55% of total enrolment. While women continue to play a major role in household financial planning, a new generation of women who are financially independent and sophisticated is emerging. The financial sector in Malaysia has also experienced significant progress, with greater diversity of players, products as well as delivery channels with extensive distribution nationwide. The widespread distribution of financial institutions has been a conscious and deliberate policy to ensure the widest reach of financial services to both the urban and rural areas.