ESG-lending in the Russian economy

The purpose of the article is to consider the current state of ESG lending in the Russian economy, the features of ESG rating of Russian financial companies and approaches to potential borrowers, and to identify the most relevant areas for the development of ESG lending to Russian companies. Despite the fact that Russian companies and the Russian economy are under sanctions and the opportunities to enter foreign markets are significantly limited, ESG remains relevant. An analysis of ESG practices in the banking sector conducted in 2022 by Expert RA showed that only large credit institutions follow the ESG concept. More than 50% of the top 20 banks have implemented KPIs for ESG indicators in their lending and investment processes. In the practice of Russian banks, ESG-assessment of credit risks includes indicators of default probability, analysis and evaluation of portfolios in terms of industry/geographical concentrations, exposure limits, borrowing strategies, scenario analysis and/or stress testing. It is concluded that Russian companies in the financial sector use ESG approache for their own strategic development and for lending to their clients, and that government support is required for the ESG transformation of the banking sector

ESG-lending in the Russian economy

The purpose of the article is to consider the current state of ESG lending in the Russian economy, the features of ESG rating of Russian financial companies and approaches to potential borrowers, and to identify the most relevant areas for the development of ESG lending to Russian companies. Despite the fact that Russian companies and the Russian economy are under sanctions and the opportunities to enter foreign markets are significantly limited, ESG remains relevant. An analysis of ESG practices in the banking sector conducted in 2022 by Expert RA showed that only large credit institutions follow the ESG concept. More than 50% of the top 20 banks have implemented KPIs for ESG indicators in their lending and investment processes. In the practice of Russian banks, ESG-assessment of credit risks includes indicators of default probability, analysis and evaluation of portfolios in terms of industry/geographical concentrations, exposure limits, borrowing strategies, scenario analysis and/or stress testing. It is concluded that Russian companies in the financial sector use ESG approache for their own strategic development and for lending to their clients, and that government support is required for the ESG transformation of the banking sector

The state of the Russian payment market: digitalization and the impact of COVID-19

The purpose of the article is to assess the state of the Russian payment market and the impact on it of two main factors - the COVID-19 pandemic and the development of the digital economy. Objectives of the article: 1) highlight the stages of development of the modern payment market in Russia; 2) identify the dynamics of the payment market of the Russian Federation (infrastructure for the provision of payment and other financial services, the number of non-cash payments, the use of cash); 3) to establish the impact of the COVID-19 pandemic and the development of the digital economy on the state of the Russian payment market. As a result of solving the tasks, the following was established. There are three stages to assess the Russian payment market. Analysis of data on the infrastructure for the provision of payment and other financial services showed that since 2010 there has been an annual decrease in the number of banks. The structure of non-cash payments is changing: the number and amount of transactions using payment cards are growing, the number and volume of money transfers are decreasing, and cash is being phased out. The impact of the COVID-19 pandemic and digitalization on the state of the Russian payment market reflects trends that are being strengthened by the pandemic and are shaping a sustainable trend

Digital adaptation of the Russian payment services market to pandemic shocks

The purpose of the article is to identify and substantiate the features of adaptation of the Russian payment services market to pandemic shocks, taking into account digitalization trends. The following regularities were revealed: increasing rates of digitalization; structural transformations of the market; blurring the lines between banking products and fintech services amid heightened competition; the emergence of payment services for retailers; growing demand for e-commerce, online transactions and contactless payment for services; increasing financial inclusion of traditional and innovative retail financial services; formation of an ecosystem approach, etc. It is concluded that the ongoing changes have a positive impact on the transformation of the market supply of payment services. In the context of the COVID-19 pandemic, payment intermediaries are using tactics of digital settlement services and reducing dependence on loan products; promoting an initial positive customer experience in remote channels, mobile applications; focusing on sustainable development of the client base