To inject durable capital into the economy, there is a clear need to bolster the capital market. This viewpoint was articulated by Alexander Vedyakhin, the First Deputy Chairman of the Board of Directors of Sberbank, during the Financial Congress hosted by the Central Bank of Russia. The takeaway is that sustained economic growth hinges on a robust market for long-term funds, which in turn supports large-scale projects that banks alone cannot finance due to their inherent funding limits. This underscores a pivotal shift: channeling more capital through securities markets can unlock ambitious initiatives that steady synchronized growth requires.
Vedyakhin emphasized that the economy’s long-run money requirements are measured in tens of trillions of rubles. Banks lack the capacity to supply funds at that scale, making the capital market a critical conduit for transformative ventures. He outlined a spectrum of strategic measures designed to stimulate market depth and breadth. Among these, relaunching a funded pension framework stands out as a mechanism to mobilize household saving for productive investment. He also proposed the creation of corporate programs and incentives to convert private savings into investable capital, and the establishment of a domestic derivatives market that excludes foreign participants to ensure national financial resilience. Additionally, introducing a modern investment account type, fostering floating-rate instruments, and expanding the universe of security issuers are viewed as essential steps to broaden market participation and liquidity. (Source: Financial Congress, Central Bank of Russia)
The discussion also covered the legal architecture that supports investment activity. Specifically, the adoption of structures such as trusts and personal funds could provide flexible vehicles for asset management and tax efficiency. While many of these instruments already exist legally, practical shortcomings have limited their effectiveness. The core issue, according to the speaker, is aligning these tools with a policy framework that keeps capital within the country while enabling legitimate cross-border investment strategies. The objective is to establish a regulatory and institutional environment where these mechanisms function smoothly, attract risk capital, and strengthen domestic market depth, thereby reducing reliance on foreign funding sources.
In his remarks, there was a forward-looking assertion about the non-banking finance sector’s role in the economy. The suggestion was that, with the right reforms, the share of financing coming from non-banking institutions could rise significantly within a decade. This would diversify funding channels, enhance financial stability, and support a broader array of services, from consumer credit to infrastructure finance. The overarching goal is to cultivate a self-reinforcing cycle where improved market infrastructure and a clearer legal framework attract more participants, deepen liquidity, and ultimately expand GDP contributions from the non-bank financial sector. (Source: Financial Congress, Central Bank of Russia)
Taken together, these points sketch a roadmap for a more dynamic and resilient capital market capable of meeting long-term economic needs. The emphasis on domestic instruments, investor-friendly structures, and a stable regulatory environment reflects a strategic priority: to channel substantial capital toward productive projects right at home, fueling growth while safeguarding financial autonomy. The dialogue at the congress highlighted both the opportunities and the practical steps required to realize them, signaling a concerted effort to modernize Russia’s financial landscape. (Source: Financial Congress, Central Bank of Russia)