loans. we believe it is entirely plausible to reduce mortgage interest rates to 8 % within the period stipulated in the presidential decree. bank lending is certainly an important, but not the only source of financial resources for businesses. both debt ( loans ) and equity ( capital participation ) instruments are important so that companies can raise funds to deliver on the national objective of raising fixed capital investment to 25 %. we have already expanded the range of such instruments. we revise regulations to simplify and accelerate the process of security issue for issuers. they already can register bond programmes, which considerably reduce procedural costs. in the near future, they will be able to register issues electronically. currently, bonds account for 18 % of total corporate borrowing, which is more than 7 trillion rubles. therefore, the accessibility of borrowings for our companies should mean not only bank lending, but also expansion of corporate bonds. however, companies need to expand their capital stock along with the use of debt financing. an improved approach to corporate governance is of paramount importance in raising equity financing. investors will only invest in enterprises whose operations they can understand, where their rights are protected, and there is a clear picture of how they can earn money. public companies have, therefore, enhanced the controlling and strategic functions of their board of directors, and will continue further enhancement. a board member is not a figurehead, as they may seem, but someone responsible for the company ’ s development. companies establish functions of risk management and internal controls, and protect dividend rights of their shareholders in the best possible way. and the last point i would like to make on the banking sector is the outcomes of major banks ’ resolution under a new mechanism. last year, we almost completed the resolution of three major banking groups and asian - pacific bank. we created a bank of non - core and toxic assets, and all banks that underwent resolution already operate in the market in compliance with all ratios. it would be fair to say that the most difficult stage of banking sector resolution is behind us. certainly, it was not painless and came at a cost. last year, the bank of russia registered losses associated with the resolution and establishment of a non - core asset bank. however, the losses on the bank of russia ’ s balance sheet mean that depositors keep their money and entrepreneurs whose funds were placed in accounts with these banks remain solvent. we avoided larger losses in the economy and knock - on effects in the financial market. our current objective is to return as

that they have to spend as much as 44 % of their income on repaying loans. therefore, we need to calculate the debt burden for each individual borrower. development of the banking sector last year, banks increased lending and cut interest rates on loans. lending to the economy rose by 5. 8 % compared to 3. 7 % in 2017. in the first four months of this year, corporate lending expanded by 2. 5 %, whereas in the same period of the previous year this figure was 2. 3 %. interest rates on loans went down most of the year until inflation risks turned to growth and the bank of russia raised its key rate. we are currently expecting interest rates to resume their downward trend on the back of falling inflation. banks can further increase lending, as they have both capital and liquidity. we are introducing incentive - based regulation measures, which should encourage lending to the real sector. we are placing an increased focus on lending to small businesses, and simplifying regulatory requirements for banks as regards sme lending. they include the scope for securitisation, reduced risk ratios for ‘ good ’ loans to small businesses, and banks ’ possibilities to assess small business customers based on a wide range of data, relieving them of the necessity of preparing complex document packages. we also introduced insurance of small businesses ’ accounts with banks, and i thank the deputies for adopting this law. this is another factor of small business development. last year, we launched proportionate regulation in the banking sector. currently, 142 banks hold 2 / 7 bis central bankers'speeches basic licences. the priority of these banks is lending to small and medium - sized enterprises. we discuss challenges faced by these banks on both bank associations ’ platforms and the bank of russia ’ s platform, and we are ready to fine - tune our regulation to create the best environment for sme operations. moving on to mortgage lending. this is the most socially important type of lending. last year, mortgage lending expanded at a high pace with interest rates falling throughout most of the year. currently, banks are resuming rate cuts after a short period of their upward revision – we registered growth to 10. 4 % after an all - time low of 9. 4 %. mortgages are long - term loans, and interest rates depend on inflation and inflation expectations. our monetary policy is therefore aimed at keeping inflation sustainably low in the long run. this is the key factor for a reduction in interest rates on housing mortgage