ofz market, information about the share of non - residents in that market is regularly published on our website. according to these statistics, the share of non - residents investing in the ofz market rose 2 percentage points from october 2016, reaching 29 % by 6 april 2017. this is hardly a substantial increase. the yield of ofz has remained fairly constant since october 2016, despite the fact that the volume of net borrowing by the ministry of finance in this period has been quite large. this is indicative of the fact that the main players in this market are russian banks, and that competition with foreign investors allows the yield of ofz to be kept from growing, despite increase in supply. in our opinion, based on the experience of recent years, a significant portion of the inflows of 2 / 6 bis central bankers'speeches foreign capital to the ofz market can be considered to be quite stable. this is connected to the beginning of russia ’ s economic recovery and an increase in the level of trust investors have in the policies which are in place. however, from the point of view of financial stability we cannot completely disregard the possibility of capital outflow from the ofz market if external or internal shocks were to take place. the bank of russia conducted a survey of foreign investors regarding their investment strategy in russian sovereign bonds. the results of the survey show that a significant portion of investors buying ofz admit that these may be sold prior to maturity. such risks need to be taken into account and their impact on the economy reduced through clear and predictable policy. this is important because the situation on global markets remains fragile and volatile while uncertainty persists in a number of factors. such factors include what format a british exit from the european union will take, at this point still unclear ; the possible negative consequences that will result from changing economic and trade policies in the united states ; and the aggravation of political risks in europe. the heightened risk of negative developments in the chinese economy, given the high degree of debt load in the economy and increase in the number of corporate defaults over the last year, may also prove to be an important factor. however, seeing as total capital inflow is considered to be small, risks to financial stability associated with the possible outflow of this capital remain quite low. the excessive optimism currently experienced in global financial markets may also be a cause for concern. the value of many assets is being overestimated by investors and increased global political risks are not being taken into account.

banks manage risks that arise. the main tool of credit risk management for borrowers already experiencing financial difficulties is restructuring. in 2016, the bank of russia began collecting operational data from banks, analysis of which showed that banks actively use restructuring in their operations. the areas in which banks make concessions to borrowers are, once again, foreign currency loans to construction and real estate companies, as well as ruble loans to coal companies which faced difficulties in 2013 – 15 due to the decrease in coal prices. it is worth noting that the process of restructuring loans does not affect the stability of the banking sector, as the loans in question generate sufficient reserves. to summarize, i would like to note that the banking sector is entering a new phase, wherein priority will shift from active work on the debt problem to the task of finding new clients and projects for lending. the bank of russia ’ s job in this case will be to carry out macro - level monitoring to ensure compliance with banking standards for taking on risk. with regard to consumer lending, since the second half of last year we have seen an increase in new loans, a decrease in the share of bad loans, and a gradual recovery in the market. yelizaveta danilova will go into this in more detail in her report. in view of declining market interest rates, we have decided to alter the scale of the differentiated risk ratios depending on the total cost of credit. however, low interest rates on consumer loans could lead to a new boom in the market for unsecured consumer lending. to deal with this, the bank of russia is studying different approaches to the regulation of borrowers ’ debt burden, in particular the relation between income and total monthly loan payments. 4 / 6 bis central bankers'speeches a number of countries actively use this type of regulation. in order for debt load information to be incorporated into regulation, banks must be able to obtain information in a timely manner about borrowers ’ total debt, their payments on existing loans and their income. in february we put out a consultative paper on the calculation of debt ratios, which banks have since made a lot of important comments on. we are now studying these comments and working on developing specific approaches. among the other tools and risks that require particular attention, i would like to turn now to interest rate risk and macroprudential stress testing. 5 ) on interest rate risk in the banking sector at present, interest rate risk in the russian banking sector is low. this is largely thanks