Banks with basic licence in talks with regulator
The meeting was also attended by the members of the Association of Banks of Russia.
‘Small credit institutions, especially those operating in the regions, contribute to the enhancement of financial inclusion. It is no secret that such banks have their own specifics. We take this into account in our regulations, including in order to ensure that banks with a basic licence have adequate opportunities for growth and development. We are ready to further develop their regulation to adapt to the changing economic conditions. At the same time, I would like the banks to also show initiative and more actively use existing resources to enhance competitiveness of their business models,’ Elvira Nabiullina said.
The Bank of Russia has plans in the near future to:
-support granting BBLs the right to open correspondent accounts in foreign banks on a permanent basis;
expand the list of securities in which BBLs can invest;
-consider the possibility of extending to BBLs a programme of incentive-based regulation for projects of technological sovereignty and adaptation of the economy;
-clarify the provisioning procedure for contingent credit liabilities, which will reduce the burden on banks’ capital;
-continue working with the Ministry of Finance of the Russian Federation and other agencies to transition to credit ratings as the main criteria for banks’ access to public funds and to ensure competitive access to subsidised lending programmes.
The regulator suggested that banks consider options for creating the so-called special banking associations, as partnership among banks can help develop their business models, reduce costs (for example, of IT and marketing), scale up business, and expand the customer base. These ideas have just been brought up for discussion, and the Bank of Russia is ready to further explore them in more detail with credit institutions if they show interest.
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