Unfortunately, the ratio between the resolved and withdrawn banks does not favour the first ones, but this situation should be reversed. We expect that the ongoing reform of supervision in the Bank of Russia will lead to a shift towards consulting supervision, wherein the Bank of Russia will be able to offer banks reasonable measures to remedy a problematic situation at an early stage. Certainly, consulting supervision is feasible only if a commercial bank is honest with the Central Bank and does not try to conceal real problems. Despite the problems I have mentioned, the revocation of licences has affected 4.3% of banks’ assets - over the past four years we have revoked more than 300 licences, or one third of all licences. The impact on the banking system at large is clearly able to be seen. On the whole, we estimate that the banking sector experiences no systemic risks, but remains resilient and capable of building up lending. Now we can say that a new economic cycle has begun: the economic downturn is over, some industries are growing at an outstripping pace, real wages have begun to grow, and demand is recovering. We believe it to be important that the banking system has now recovered from the shocks of 2014-2015. This is evidenced by return, profit and capital stock figures, as well as other data. Banks are well-positioned to develop their business and build up lending.
The aggregate capital adequacy ratio sits at a comfortable level slightly above 13% (the minimum 2/4  BIS central bankers' speeches  value is 8%). We estimate that current capital stock is worth 1.8 trillion rubles, which is sufficient to boost lending. Banks’ nominal profits have recovered to the pre-crisis level of roughly one trillion rubles, though real profits are still below the pre-crisis readings. In relation to 2013 prices, profits are still 30% lower. We expect banks to use their profits to boost growth in the banking business, and to step up lending. To do so, they should convert the bulk of their profits into capital. Currently, financial statements suggest that 88% of profits will be converted into capital. I hope that the final figure, after profit allocation between shareholders has occurred, will not differ greatly. Furthermore, banks’ profits increased by 212 billion rubles in the first two months of 2017, a growth rate 2.5 times that of the same period of the previous year. Despite the fact that the current situation in the banking system is quite good, we believe that changes are brewing, which will allow the banking system to more efficiently meet citizens’ demand and economic development objectives. Both bills which we consider to be pivotal - the proportional banking regulation bill and the new resolution mechanism bill - have passed the first reading at the State Duma.