As you know, one of the Basel Committee’s best-known achievements was the release in 1988 of an agreement on how to define and measure the adequacy of a bank’s capital. The 1988 Basel Capital Accord was a milestone. For the first time, supervisors agreed on a definition of capital and a minimum requirement that has been adopted in over 100 countries. More importantly, the Accord reversed a downward trend in internationally active banks’ capitalisation, thereby strengthening the health and stability of the global banking system. In the years since 1988, the drawbacks of a simple approach to capital regulation have become more apparent. Advances in technology and telecommunications, innovation in banking products and services, and the increasing globalisation of financial markets have changed the way that many banks measure and manage risk. Today, the 1988 Accord no longer provides these banks - and their supervisors - with reliable measures of the actual risks they face. The structure of the New Accord In response, the Committee decided in the late 1990’s to refine the measures for assessing and managing risk in the Basel Accord. But we wanted to achieve more than a simple update of the rules. Instead, we wanted to incorporate the best practices used by leading organisations across the industry. By doing so, we hope to strengthen the stability of the global financial system, something that would benefit not just banks but the society at large.
Review of monetary policy Winding up, I would like to remind you that the Bank of Russia has announced its plans to review its monetary policy over the period since the switch to the inflation targeting regime. Within this review, the Bank of Russia will analyse the actual results achieved, the changes in the economic environment over this period, and long-term trends that might impact the implementation of monetary policy in the future. The results of this work and the findings relevant for the parameters and practice of the Bank of Russia’s policy will be presented by the middle of next year and will be taken into consideration in the course of the elaboration of the Guidelines for 2023. Conclusion Recently, Russia’s economy has demonstrated multiple times its ability to adjust to the changing environment. Regardless of how the situation unfolds, we will do our best to create necessary conditions to further develop the country’s economy and enhance its resilience. Monetary policy aimed at ensuring price stability and enabling a countercyclical response to changes in the economy is an essential condition for sustainable and well-balanced economic growth. Thank you for attention. I am ready to answer your questions. 4/4  BIS central bankers' speeches