... forecasting economic cycles and assessing future market activity. In this article, you will learn what indicators the index consists of, how it is used by investors and economists, and also analyze a real case when the LEI helped predict the global financial crisis. The Leading Economic Index (LEI) is a comprehensive indicator used to forecast economic developments. The index combines several key statistics that are believed to predict future economic activity. For example, a rise or fall in the index can indicate whether economic ...

... freezes are not unique to Russia. International examples include: Cyprus, 2013: Amid a banking crisis, the government temporarily froze access to deposits and implemented significant levies to stabilize the banking sector. Argentina, 2001: During an economic crisis, strict limits were placed on withdrawals, sparking public outrage and protests. Why a Deposit Freeze Could Happen Today Several factors could lead to a deposit freeze in Russia as an emergency measure to stabilize the financial system: High Key ...

... required to adhere to stricter regulations and requirements imposed by the Central Bank. Such requirements include: Additional Capital Requirements — Banks must maintain a higher level of capital to minimize the risk of capital inadequacy during a crisis. Increased Reserves for Potential Losses — To support liquidity and ensure readiness for economic shocks. Thorough Risk Management — Banks are obligated to closely monitor credit, market, and operational risks, implementing robust internal control mechanisms. These measures aim to better prepare banks for potential crises and maintain their ...

... of a financial bubble . Historically, GDP grows relatively smoothly, reflecting real economic growth, while the stock market is more volatile and conveys investor expectations regarding future profits. When market value significantly outpaces real economic output, there arises a risk that investors are pricing in overly optimistic growth scenarios – a situation that often precedes substantial price corrections. Record Levels: Surpassing the Dot-Com Bubble and the 2008 Crisis Currently, the Buffett Indicator is at an all-time high. According to recent estimates, the total capitalization of the U.S. stock market exceeds the annual GDP by more than double. In other words, the ratio has surpassed 200% . In comparison,...

... an important message to businesses and investors that the financial system of Russia is developing in a more stable and well-considered manner. The introduction of the countercyclical capital buffer indicates that the state is prepared for potential economic challenges and aims to protect the banking system from crisis situations. Such a policy can be beneficial for us entrepreneurs, as stable banks are reliable partners for implementing long-term projects. While this may lead to a reduction in short-term bank revenues, on a business level, it creates a more ...