PANSIONAT BOR /Moscow region/, February 11. /Corr. Alina Yevstigneyeva/. The management of the Bank of Russia invited the bankers to engage it in an active dialogue in order to strengthen the trust of population and business to the banking system in difficult economic conditions. At the February annual meeting in suburban boarding house “Bor”, which in recent years has already become “iconic”, the Central Bank for nearly seven hours urged the banks not to hide their problem and boldly and openly to treat them in the Central Bank. For the first time in 10 years the doors of the house opened and for the press, which was allowed for the duration of the meeting.
Last year a similar meeting in the “forest” was held amid the devaluation of the ruble and once in December, the Bank of Russia raised its key rate by 6.5 percentage points to 17%. The beginning of this year was also marked by the depreciation of the ruble, the Russian financial authorities are confident that the banking system is already sufficiently adapted to such changes.
Work at night
The average bankers hands, who were the main participants of the meeting actively complained to the regulator for the failure of meetings and conversations “heart to heart”. In response, the first Deputy Chairman of Bank of Russia Alexey Simanovsky has proposed to hold for all bankers who want to come to the regulator for advice and experiencing a number of difficulties, similar to “night at the Museum”. “Come, come. Those who feel that is not all right,” said Simanovsky bankers. “Who come?”, I asked from the audience. “Come to me. I totally understand. I usually half past eleven hours from work to care, let us specially for this reception will be from midnight. It will be a “night at the Museum”, – jokingly suggested Simanovsky. “I also support the call for trustful dialogue”, – appealed in his turn, the Chairman of the Central Bank Vasily Pozdyshev.
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With themes of confidence his 40-minute speech began and the head of the Central Bank. “Our goal as a regulator to ensure the confidence of citizens and businesses in the banking system. The Bank of Russia is open to dialogue”, – said Nabiullina, noting later that the positive dynamics on deposits suggests that the trust of the population managed to preserve and enhance. In General, the head of the Central Bank seemed happy with the situation in the banking sector: it is noted the growth of assets in the sector, the successful completion of a difficult period of adaptation of the economy and overcoming the symbolic mark of 100% of the GDP of the country in assets of the banking sector. According to Nabiullina, the beginning of a new wave of instability in the economy should not become an excuse to introduce new exemptions for banks or terminate the health sector.
“The Central Bank has taken measures to facilitate the adaptation of the banking system, has relaxed some regulations. We did this in order to give the banking system time to adjust to new conditions, and not to hide the real issues”, – said Nabiullina today. She recalled that recently, the Central Bank made advances to banks and extended the “play courses” (in the words of Chairman of the Central Bank Vasily Pozdyshev) for 1st quarter to 31 March. More perks will not, Nabiullina said, but added that everything will depend on the situation in the economy.
The overall relationship of the Central Bank and credit institutions remain the same, including two of the global trend for the health sector and the transition to the international standards of Basel, Nabiullina recalled. However, it also announced several initiatives that will be new for the bankers. Such innovation was announced three: handling controller “attention” on the sources of capital formation, devolutionary Bank balance sheets and new approaches to Bank resolution.
Reviewing the Central Bank macroeconomic forecasts and expects low oil prices for a long time
According to the head of the Central Bank, the regulator will encourage a decline in the share of currency in assets and liabilities of banks, including by raising standards. In particular, Nabiullina proposed to establish increased coverage ratios capital on loans in foreign currency to reduce valorisatio Bank balance sheets. So, for all loans and securities in foreign currency, except for loans to subjects of the Russian Federation, the Central Bank proposes to set upward a factor 1.1 for the requirements covering the capital of these loans. In addition, the property ratio will be 1.3, securities to non-residents is 1.5. “We will carry out measures to devolatization smoothly enough,” he promised her. The main argument for them – reduction of risks to financial stability and systemic risks for the real sector, said the head of the Central Bank.
Nabiullina also considers it possible to introduce innovations in the system of rehabilitation. In her view, banks sanatory before participating in the competition could provide detailed plans for participation in rehabilitation instead of today’s “very simplified”. In addition, banks-the senators need to prove their motivation of participation in the rehabilitated Bank anything other than a financial interest in obtaining a database of depositors.
“For us it is important to understand that there is a business model that increases the solvency of this Bank, now is not always the case. Second, it seems to us insufficient motivation of Senatorov”, – she explained. “There is a problem. Specifics discussed,” she added.