Wednesday, June 1, 2011

Top managers of the banks of the Central Bank produces its competence

Central Bank intends to demand the resignations not only the chairman, but the bank executives rank below, if the situation in the credit organization is close to critical. About this newspaper Kommersant on Friday, April 8. Control measure aimed at combating criminal bankruptcy. The new draft statement of licensing, there is one very significant innovation. Now members of the Board, Deputy Chairman, heads of branches and their closure when negotiating their nominations at the central bank will indicate the range of bank departments and activities that they oversee. Moreover, to change the scope of its competence, they will be obliged to inform the Central Bank within ten days from the date of such changes. As the newspaper notes, is now the Bank of Russia, such information is not provided, making it difficult to use sanctions to bank managers. Under the current law on the Central Bank in case of crisis at the bank regulator may require the replacement of top managers of a credit institution, but in practice the requirement to replace the Central Bank raises almost exclusively to the President of the Board (Kommersant said that in 2010 a regulatory requirements put forward six times). Opinions of Experts and market participants interviewed by the publication, is divided. Some believe that to confront the illegal withdrawal of assets from the bank, this measure can not, because, for example, nominated lawyers in the Central Bank did not agree. Others believe that such monitoring would seriously interfere with the operational management of the banks. Finally, there is the view that top managers advance notice of the Central Bank on the terms of its competence, it will be much easier to apply for the exclusion of a "blacklist" the regulator in the event of revocation of a license from the Bank. Of course, if their innocence.

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