Bankers can disqualify for life for repeated violations

Bankers can disqualify for life for repeated violations


It is about the repetition of the gross errors in the management of the Bank, said the Chairman of the Central Bank Mikhail Sukhov. He stressed that the extent of the violations in banks with revoked licenses is huge.

TULA, 2 Feb. The Bank of Russia plans to increase the period of the ban of banking for executives and heads of banks, which brought the Bank to the revocation of the license, with 5 to 10 years, in special cases, it intends to introduce lifetime bans in recurrent and one-off very serious violations, stated to journalists by the Chairman of the Central Bank Mikhail Sukhov.

“We are implementing measures that allow to remove from control and from store management individuals who “light up” with other banks. Last year, we sent requirements on removal from the guide 16 persons who’ve built major problems in the past the Bank”, — said Sukhov.

We are talking about amendments to the law on banks and banking activity. “Just our “black base” now 4742 people. Their number increases proportionally to the number of banks whose licenses were revoked. And it is clear that these persons now are not able not only to hold positions in banks, they cannot participate in official control of other credit institutions”, — said the Chairman of the Central Bank.

“I think there is nothing invalid in a lifetime disqualification of the bankers. We should be talking about the repetition of serious mistakes in the management of the Bank. We put the question on prolongation of term of stay in the “black base” with 5 to 10 years, perhaps even to consider the possibility for lifetime ban as one of the options at relapse and occasional gross violations “minus 187,4 billion (rubles — ed.), equity in principle… and 10 (billion rubles — ed.) too, enough,” he added.

Sukhov noted that in cases where there is a speech about a lifetime ban, should be given the opportunity to appeal decisions. The Chairman of the Central Bank stressed that the extent of the violations in banks with revoked licenses is huge. “Total excess of liabilities over assets, in banks from which we withdrew the license for the last 2.5 years, has reached 1.2 trillion rubles, 1.9 trillion in liabilities. You have to understand that the scale of this disaster at banks located in the state of revocation of license they serious”, — said Sukhov.

He said that the bill has already passed in the first reading the state Duma, but the Central Bank is preparing amendments. “We hope that in spring we will be able to discuss (them — ed) in the State Duma”, — said Sukhov. He explained that the lifetime ban could be introduced after a decade-long period of prohibition, when it ended the process of bankruptcy of the Bank and assessed the full scale of the violations.