The Russian Central Bank intends to expand the powers of the curators of the banks, the newspaper “Izvestia” with reference to Deputy Chairman of the Central Bank Vasily Pozdyshev and Olga Polyakov. Now representatives of the Central Bank will assess the business models of charges for credit institutions.
Currently, the curators of the Central Bank, large banks, engaged in supervising one or several banks, analyzing their credit risk.
Central Bank refers banks to the five quality categories based on their economic status. Among the criteria – the results of the evaluation of capital, assets, profitability, liquidity, quality of management and transparency of the ownership structure of the Bank. Also takes into account the Bank’s compliance with the required ratios and measures of the regulator, applied to the Bank earlier.
“Evaluation of the supervisors of the business models of banks in the Supervisory order have to be applied in the course of this year. Risk analysis of assets and transactions is not done by the curator, as before, and service risk assessment. The curator will evaluate procedures for risk management, capital adequacy and business model,” – said the newspaper Vasily Pozdyshev.
According to Olga Polyakova, the extension of the powers of curators “aims at a more comprehensive assessment of the quality of governance in credit organizations”.
In addition, there is a redistribution of responsibilities between the supervisors of the regulator to credit institutions and risk analysis. In particular, the curator will be able to offer the Central office of the Central Bank measures of Supervisory response.
New powers of the curators, in fact, mean the tightening of banking supervision, say of respondents edition experts. The crackdown is ongoing, albeit gradually, and this trend will continue in the future.