Russian Government Proposes that Banks Create Contingency Plans

© Sputnik / Vitaliy Belousov / Go to the mediabankThe Russian government has proposed amendments to the country's banking law which would force its major banking institutions to create contingency plans in the event of economic decline.
The Russian government has proposed amendments to the country's banking law which would force its major banking institutions to create contingency plans in the event of economic decline. - Sputnik International
Subscribe
The Russian government has proposed amendments to the Central Bank law, requiring banks to create contingency plans to restore their financial well-being in the event of economic decline.

MOSCOW, October 19 (RIA Novosti) - The Russian Cabinet has proposed amendments to the country’s law on the Central Bank, requiring major credit institutions to present contingency plans for restoring their financial stability in the event of a general economic deterioration, RIA Novosti’s Russian-language service reported.

The proposed amendment would obligate banks to create, renew or expand plans to ensure that their financial well-being would be re-established in a timely fashion, guaranteeing that they would run smoothly under any economic conditions. This would address the interests of bank owners, managers and clients alike, the proposed amendment, which has been posted on the Cabinet’s website, notes.

“These amendments are intended to ensure the financial soundness of credit institutions, including those which are considered systemically important, and to strengthen the stability of the banking system as a whole,” the amendment proposal reads.

The proposals are in line with banking regulation reforms being carried out by Russia’s Central Bank Chief Elvira Nabiullina. Her tenure has seen the Central Bank tighten its regulation and oversight over the financial sector. Since last year, the Central Bank has revoked the licenses of over 60 banks due to high-risk credit policies and a lack of adequate reserves, Russian business news service RBK has noted.

The amendment is based on the bill “On the Central Bank of the Russian Federation,” which was passed by the Russian parliament in September 2013.

Newsfeed
0
To participate in the discussion
log in or register
loader
Chats
Заголовок открываемого материала