The authorities will consider increasing the role of the Central Bank in the supervision of VEB

Moscow. November 16. The Russian government is considering the issue of strengthening supervision by the Central Bank of the Russian Vnesheconombank, which needs a multibillion-dollar aid for closure of problems in balance.

According to the newspaper “Kommersant”, the speech can go about transfer of the OFZ VEB 1.5 trillion rubles. This is the assessment of the needs of VEB recapitalization, made by the Central Bank, stated in one of the newspaper’s sources.

Now VEB is not regulated by the Central Bank and is not obliged to comply with regulations on capital and other regulatory requirements.

“He’s certainly not a commercial Bank and he has no such standards. But on the one hand, firstly, it is audited by. And auditors are present to him in this sense, the quality of the loan portfolio, and so forth, the same requirements as banks. And, secondly, VEB has an agreement with the Bank of Russia, which allows it to participate in the financial services sector. In accordance with this agreement, it needs to be guided by prudential principles, and conventional banks”, – told journalists the Minister of economic development Alexei Ulyukayev.

However, according to him, need to talk about increasing the role of the Bank of Russia for supervision of the Corporation. “To a large extent, so that he directly could audit the current balance of the VEB in order to give him some quality right credit decisions,” said the Minister.

Answering specifying question, what could it be for the supervision and need for this amendment, he said, “It means that we must consider the increasing role of the Bank of Russia in supervising the activities of VEB”.

The issue of strengthening supervision by the Central Bank for VEB and the receipt by the Corporation of a banking license was up this year during the preparation of the draft law expanding the powers of the Bank. When considering one version of the bill, the Central Bank has highlighted the risks of convergence of the business model VEB with the model of a universal Bank despite the fact that VEB is no obligation to comply with most regulatory requirements established by the Central Bank.

The Central Bank then declared that in case of expansion of functionality of the state Corporation Vnesheconombank for the need to establish oversight similar to the supervision of banks, including through a license. While the regulator warned that it may consider reducing the volume of refinancing of VEB that will affect the ability of the Corporation to perform the functions of a development Bank.