Tougher oversight is needed to revive the banking sector, getting rid of weak players, so that citizens could trust to Russian banks, says Elvira Nabiullina.
MOSCOW, 10 Oct. The Central Bank will continue its policy of tightening supervision in the banking sector, said the head of the Central Bank Elvira Nabiullina.
“I wouldn’t call it mopping up, it is rather the recovery of the banking sector, the deliverance of the weak players, and of course, we will continue the policy of tightening supervision to ensure that banks are healthy and they could trust our citizens”, — said Nabiullina on the TV channel “Russia 24” on the question of the readjustment of the financial market.
According to her, the license revocation is “an extreme measure, when we have no other impact on the Bank”.
The Central Bank has embarked on the rehabilitation of the banking system with the advent of the new head of the regulator Nabiullina in the summer of 2013. Some experts believe that the regulator intends to consolidate the banking sector. There are different grades, the most daring of which predict that the number of banks in Russia will be reduced to a few dozen with the current eight hundred. To date, licenses have lost more than 100 banks.