The Role of Non-Bank Financials in the Formation of Long-Term Resources for Economic Growth in Russia

2022
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Figure 3. 
Weighted average return on investment of pension savings and pension reserves of non-
state pension funds, %. Source: Bank of Russia 2021a. 
Investments in corporate bonds also predominate in the structure of pension re-
serves; investments in government securities have grown significantly, with the share of 
stock falling by more than half. The weighted average yield from the placement of pension 
reserves during 2019 remained at a level lower than the yield on pension savings—8.2% 
and 10.1%, respectively—which was associated with a smaller share of debt instruments 
that showed good dynamics in this period in the investment portfolio pension reserves. 
With the increasing role of the non-banking financial sector, the potential of these 
institutions is clearly underestimated, which was also facilitated by the state policy in the 
pension sphere. The confidence of a significant part of the population both in this policy 
and in non-state institutions has been significantly undermined. This can be confirmed by 
the data on the share of pension savings and reserves in the Russian GDP (Figure 4). 
Figure 4.
The ratio of the volume of pension savings and reserves and their investment portfolios to 
Russia’s GDP, %. Source: Bank of Russia 2021a. 
6.5
4.9
10.8
9.6
4.6
0.1
10.7
7.2
5.9
1.9
7.7
10
5.4
5.6
8
5.8
7.4
11.4
12.9
5.4
2.5
4.3
3
4.9
0
2
4
6
8
10
12
14
2013
2014
2015
2016
2017
2018
2019
2020
Return on investment of pension savings
Return on investment of pension reserves
Inflation
2.5
2.6
2.4
2.3
2.7
1.3
1.1
1.1
1.1
1.2
2.5
2.7
2.5
2.6
2.8
2.3
2.1
1.7
1.7
1.9
1.3
1.3
1.2
1.3
1.4
0
0.5
1
1.5
2
2.5
3
2016
2017
2018
2019
2020
Ratio of the investment portfolio of pension reserves of non-state pension funds to GDP
Ratio of the investment portfolio of pension savings of the Russian Pension Fund to GDP
Ratio of the investment portfolio of pension savings of non-state pension funds to GDP
Ratio of pension reserves to GDP (non-state pension provision)
Ratio of pension savings to GDP (mandatory pension insurance)