p. and in the retail segment by 0. 8 percentage point since the beginning of the year. this allows banks to lend at lower rates without losing too much of their margins. but there is a flip side of the coin here too : it affects the attractiveness of deposits versus other forms of savings. this year we have seen a record flow of retail funds into alternative savings instruments, and capital market instruments. in general, this flow does not affect the total amount of savings in the economy, or their availability as a resource base for investments. but banks, when determining their policy on deposit rates, need to take into account this growing competition from the securities market and other instruments. and in the structure of the deposit products they offer, accommodate for the fact that over a medium - term horizon, as disinflationary factors and disinflationary risks are exhausted, a return to neutral monetary policy is inevitable. now about banking sector profit — in the first 7 months of this year it stood at 761 billion rubles ( return on capital — about 13 % year on year ). that said, of course, it is necessary to consider that more than 70 % of this profit was made in q1, while in q2 profit fell to 102 billion rubles. it is difficult to make profit forecasts right now. however, in light of the normalisation of the economic situation, the extension of a number of easing measures and the timetable for additional provisioning, a profit this year of about 1 trillion seems achievable. the fact that most banks maintain profitability ( in general, the proportion of unprofitable banks has probably not changed significantly during the pandemic and in general the share of assets of unprofitable banks in the assets of the banking sector is now about 5 %, i. e., in general, the share of unprofitable banks is not very large ). all of this allows banks to ramp up lending and maintain capital reserves. in general, the overall sector ’ s capital reserves, measured against key capital ratios, stand at about 5. 9 trillion rubles. this is enough to reserve, if necessary, an additional approximately 11 % of banking sector lending, which is a very serious safety margin. that is, suppose even if about a third of those restructured loans end up defaulting ( which is not a small amount ), the capital reverses cover this amount threefold. let me clarify that this is

with an increased debt burden on borrowers. to ensure that this situation does not increase pressure on banks ’ capital, we have reduced macroprudential buffers by 30 – 50 percentage points. the maximum reduction is for borrowers with a low debt burden, so that the recovery of retail lending occurs without a dangerous increase in household debt overburden. 2 / 7 bis central bankers'speeches arrears grew more in the retail loan portfolio than in the corporate portfolio but also moderately — from 6. 6 to 7. 9 %. impairment was mostly seen in unsecured loans, while mortgage quality has remained consistently high. at the same time, non - performing loans are well covered by reserves ( more than 75 % ). significant loan impairment was avoided thanks to numerous support measures for borrowers by the government and support measures for banks, and the easing of the reserves on restructured loans adopted by the central bank. since the start of the pandemic, banks have restructured within the framework of their programs as well as repayment holidays about 10 % of the total portfolio ; the significant amount of 1. 5 trillion mr aksakov referred to mostly concerns small and medium businesses and individuals. and if you take all the restructuring that banks carried out on large loans and large enterprises — it comes to more than 5 trillion, i. e. it is a rather large amount of restructuring. its peak was in may, and as of july there has been a steady decline in the demand for restructuring from borrowers, which also suggests there is a normalisation and gradual recovery of economic activity. restructuring was really important during the most serious period of the pandemic when a significant chunk of businesses ceased operating and many people ’ s incomes declined. we have permitted that reserves on such loans may temporarily not be increased so that banks can carry out this large - scale, really large - scale, programme, spread losses over time, and enable businesses and households to regain their creditworthiness. but in the short term, i urge banks to do this. banks must assess the real loan portfolio quality. it is very important that the recognition of losses on non - refundable loans is not overly delayed. i understand that banks will want to drag out this regulatory easing, but “ delaying ” the recognition of losses can lead to banks not being able to direct resources to lending to effective companies. having non - performing assets on the balance sheet reduces investor confidence. there are many examples in global practice where there