It outlines our approach to applying professional judgment within the supervision process (incidentally, not restricted to banking supervision alone). I hope that following discussion with the professional community and legislative bodies, the necessary changes will be made. I would now like to address the development of other sectors of the financial market. Starting with what, in our opinion, is the key area – creating sources of long-term money in the financial system e.g. the funded pension system, investment of insurance reserves and various forms of investment (primarily collective). We are putting a great deal of effort into preserving the funded pension market. Accounting for demographic trends, the funded component is the only way to ensure a reasonable pension level. This is extremely important for broadening the horizon of investment in the economy. We have fully corporatised non-state pension funds. Now, all funds concerned with compulsory pension insurance are participants of a guarantee system. The financial stability of non-state pension funds continues to increase thanks to strict admission to the guarantee system, constant monitoring of non-state pension funds, as well as initiating stress tests. We will be overseeing this progress. To assure future pensioners of their income, we plan to introduce fiduciary responsibility for NPFs. To broaden the horizon of their investment, we will change the remuneration system to fend off the false motivation behind recording income for a short period of time. These measures are the groundwork for ensuring that NPFs are stable and work to benefit their clients. But it is not enough.

The national infrastructure will foster competition in the market, encourage new financial ecosystems and, as a result, provide cheaper and better quality products to the public. What elements are included in the national infrastructure? Remote identification for both financial and public services. We are working on this with the Government. This involves creating a platform for instant retail payments so that consumers can easily make payments and transfers regardless of where they hold their account. It also involves creating marketplaces offering financial products and services to individuals and helping them to choose cost-efficient and safe purchases. Lastly, it involves developing the national payment system. It is our aim to create an entirely new payment infrastructure type for Russia. What is more, effectively countering cyber threats is increasingly important. We’ve seen malicious programs paralyse even the largest companies for hours and days. This year, the congress will include a session devoted entirely to information security in the banking sector (more generally in the financial sphere) for the first time. Our near-term priorities include establishing information security standards for financial institutions, continuing work on identifying threats and helping the market to develop effective strategies to deal with cyber-risks. I would like to add a few words about regtech. Up until now, all financial regulation and supervision mainly concerned prudential aspects: capital, liquidity, profitability, and asset quality. The shift that digitalisation brought about in the financial industry touches not just on the emergence of fintech companies but also the widespread use of new technologies by existing financial institutions.