In other words, the limit of the entire banking sector’s capability to provide lending to the economy has increased by this amount — ten trillion rubles. Banks thus have opportunities for a further expansion of lending, which is critical at the stage of economic recovery. I will now speak about challenges in the near future and in the longer run. Essentially, all challenges for the banking system are not new, but the pandemic, in our opinion, has accelerated the time when we should give an adequate response to them. As we have discussed it earlier in the course of our multiple meetings, intensified competition — and, moreover, intensified competition coupled with low interest rates — is a drag on bank margins, with many banks doubting business models that existed before this situation. In 2020, bank margins declined only slightly, specifically by 20 basis points, according to our assessments, i.e. remained approximately the same as before the crisis. However, this decrease may be more significant further on due to the factors of tighter competition and new business development models implemented both by large banks and because of rather low interest rates. Actually, we have discussed the topic of business models that could be sustainable in the long run in the course of our multiple meetings. To earn money, it is essential to continuously enhance services, technologies, and products. Banks may also improve their efficiency and competitiveness through banks’ consolidation, although there are very few such examples at the moment.
Probably, the first step is to disclose data, provide information on green social bonds the committees shall offer to market participants. These standards will become effective in autumn 2021. In addition, we are currently developing the rules for verifying financial ESG instruments. Cyber security which has been mentioned by Anatoly Aksakov is also a critical topic that will become increasingly important. Information security is essential in the conditions of digitisation as a key trend impacting the financial industry. Overall, the issue of operational risks and cyber risk resilience will certainly be in the focus of our attention. In this regard, we will be developing an adequate approach to assessing these risks, working jointly with you, so as to ensure banks’ resilience to them. Among other things, it is possible to create joint market-based infrastructure solutions. Wrapping up, I would like to say that, despite the problems and challenges that are important for banks and the regulator, we believe that banks really made their best last year in terms of both their own robustness, so to say, fire resistance at the moment they had to face the crisis, and the support they provided to their clients. The crisis will be over, while these two components will remain as significant.