Eight of the largest Russian banks out of the ARB because of the “sole and populist” decisions of the President
“Sberbank”, VTB, VTB24, “Alfa-Bank”, Gazprombank, “Rosselkhozbank” and FK “Opening” has decided to withdraw from the Association of Russian banks (ARB). About it as transfers “Interfax”, said in a joint press release from credit institutions.
The main claim to ARB in the press release named the fact that often decisions are “made by the President of the Association single-handedly and are populist in nature, and the lack of calm, measured dialogue between him and credit institutions hindering the further development of the Association”.
The document also States that numerous proposals of the Association members on personnel changes in the leadership of the ARB and the change of its principles were not heard.
“Given the above, we accept the decision to withdraw from the Association and we consider inadmissible all further actions carried out on our behalf,” – said in a press release.
“We have to admit that in recent years the effectiveness of the Association’s activities has been steadily declining. This is largely due to the poor performance of its leadership, which, in our view, when making decisions ceased to consider the interests of its members,” write also to bankers.
In addition, the ARB “non-Bank members with other interests led to the loss of status as a Bank ARB Association”, they suggest.
A statement of withdrawal of these banks from ARB will be considered at the Council, reports a press-service ARB.
The Association thus categorically rejects the accusation that the findings of the report do not correspond to the opinion of the members of the Association, reminding that the position of the ARB on the development of the banking sector in particular contained in the report to Congress in 2017, was approved on a Council vote in March ARB 44 votes for and one vote against and one abstention.
“We regret that some large credit institutions took the decision to withdraw from ARB. The big banks – members of the Association can (and always could) to take an active part in the formation of the ARB’s position on issues of financial market development on different levels – from Board ARB to work in the committees of the Association. Application for withdrawal of banks from the composition of the ARB, according to the Charter, will be considered by the ARB Board”, – quotes the press service of the President of ARB Tosunyan.
Also, according to him, the articles of Association involves the rule of “one member Association, one vote” and this rule is strictly observed. All major decisions related to the activities of the Association, are made collectively by the Board and approved by the ARB at the Congress of the Association.
Recall that in late March ARB expressed dissatisfaction with the fact that the Central Bank restricts the access of banks and credit institutions to the amount of capital and all too often withdraws the license of the Bank.
In response, the head of the Central Bank Elvira Nabiullina, speaking at the Congress of the ARB, was subjected to rigid criticism position of this organization that, in its opinion, assumes the role of “lawyer bad banks” – and criticizes the regulator for the withdrawals and does not protect honest players in the market.
On the eve of the Congress of the ARB in March, “Alfa-Bank” announcedit would suspend membership in the Association. The credit institution has not agreed with the ARB’s report, which criticized the work of the Central Bank to improve the banking system.