The Chairman of the Bank of Russia Elvira Nabiullina will chair the Board of Directors of Agency on insurance of contributions (ASV), and thus, will have the right to nominate a candidate for the post of General Director of ACB, said “Interfax” a source in the financial-economic bloc of the government familiar with the bill of the Ministry of Finance about the new scheme of financial rehabilitation of banks.
The DIA declined to comment. The representative of the Central Bank in conversation with said that the appointment of Nabiullina for the position of head of the Board of Directors of ASV really discussed, but the discussion is still ongoing. “This option is considered, but the discussion is not yet completed,” he said.
The beginning of the development of the draft law the Ministry of Finance announced last week. The document allows the Central Bank to enter the capital in restructured banks via a special Fund and management company. According to the interlocutor of “Interfax”, the bill is modified. The text is not yet published.
Amendments to the law will actually put the DIA under the control of the Central Bank: the ECB policymakers will hold the majority of seats in the Board of Directors of the Agency (seven), while the government takes only five seats (the current ratio in favor of the government).
Under current legislation the General Director of the ACB is appointed by the Board of Directors upon recommendation of the Chairman of the Council. The President in turn is elected by the Board at the proposal of the government.
Since the establishment of the DIA in 2004, the Board of Directors of the DIA was headed by the Finance Ministers: first Alexey Kudrin, and after his retirement Anton Siluanov. According to the interlocutor of the Agency, in the case of the entry into force of the amending Nabiullina may lead the Board and, thus, be eligible to nominate a candidate for the post of General Director ASV.
The amendments also empower the Board with the authority to make decisions on creation by the Agency of other legal entities, as well as on the participation of the DIA in other legal entities, said the interlocutor of “Interfax”. According to him, all these changes come into force since the publication of the ASV of banks ‘ capital in respect of which the Agency acts as a turnaround. About this condition and said the Central Bank, stating that the DIA must complete some projects for the rehabilitation of banks, involving the direct participation of the Agency in the capital, including out of capital of the Bank “Russian capital”.
In mid-October, Nabiullina at the financial forum in Kazan reported that the Bank of Russia may become the curator of the DIA within the framework of a new model of rehabilitation. “Maybe there will be a separate management company or the DIA will be under our supervision”, — said the head of the Central Bank.