The Bank of Russia in the coming years plans to move from a “punitive” method of supervision of banks to the “Advisory”, said the first Deputy Chairman of the Central Bank Dmitry Tulin. He estimated that it could take five to seven years, while optimists believe that the first results of such a transition can be seen in two to three years, write “Vedomosti”

“The goal that we set, and Advisory rather than punitive supervision”, – quotes the words Tulin newspaper. According to him, the new approach is based on building a dialogue with the banks. The regulator will seek to punish credit institutions, if they voluntarily admit the violation and unless required by law. Measures of Supervisory response should be an extraordinary event, says Tulin.

The transition to the new approach will increase demands on information available to the Supervisory unit. According to Tulin, the staff of the relevant Department of the Central Bank would ideally need access to data about top managers and owners of the banking business “up to the family situation, kinship and business ties, and it is better to know more about the culinary preferences”. The curator of the Supervisory functions the Central Bank expects that this knowledge will allow to better model the behavior of Bank management in difficult situations. In particular, it helps to understand whether it is possible to expect large-scale fraud reporting, he explains.



The Central Bank announced the change in the method of supervision of banks – from “punitive” to “Advisory” 22.11.2016

Share this news

Share to Google Plus
Share to LiveJournal