CBR: Construction Companies, Tertiary Sector Behind Demand for Shadow Banking

20 March 2019 (09:16)

UrBC, Moscow, March 20, 2019. This week, the Central Bank of Russia carried a report on the sectors of economy that were primarily responsible for creating demand for shadow banking services last year, the CBR’s press service reports.

‘The Bank of Russia’s assessment suggests that last year the bulk of such dubious transactions were carried out by construction sector companies (29%) and service firms (security, cleaning, advertising – 21%),’ the bank’s website states.

The retail/wholesale trade sectors (industrial goods and commodities) carried out 16% of such transactions each.

‘The publication provides information about economic sectors whose participants most frequently used dubious transactions to divert budget funds and the funds of state corporations and real sector companies to the shadow economy.’

‘This is the first year-end assessment of this kind; it is based on data from the Financial Monitoring and Foreign Exchange Control Department,’ the press service explains.

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