Alfa-Bank has terminated the membership of the ARB because of the allegations of the Central Bank in “cynicism”

Alfa-Bank, one of the top 10 largest credit institutions of Russia, announced the suspension of its membership in the Association of Russian banks (ARB) in connection with the “significant divergence of positions on actual problems of development of the banking system.”

The reason for the conflict was published in the run-up scheduled for March 28 the annual Congress of the ARB annual report, in which the leaders of the Association were subjected to the action of the Central Bank for “clearance” of the banking sector to harsh criticism. In the document, in particular, it is argued that the activity controller for the “clipping” of individual banks from public funds “takes on a very strange (if not to say cynical) form and loses all logic”.

In a statement, Alfa-Bank, published on the website of the credit organization, emphasizes the disagreement with some of the conclusions and assessments contained in the report in which the Bank’s experts did not participate.

“The style of the report containing the charges of the Central Bank of the Russian Federation in cynicism, favoritism, work in “military operations,” the intentional reduction in the number of banks, the Jesuit use of language, undermining the stability of the banking system, as well as suppressing competition, is contrary to the spirit of constructive interaction and cooperation that exists between the regulatory authority in the face of Bank of Russia and the healthy part of the national banking system,” — said in a statement.

The authors of the statement of Alfa Bank expressed confidence that the major threat of competition in the banking sector remains a weak and unscrupulous players.

“Banks that have lost capital, must be removed from the market. The Bank supports the efforts of the regulator to cleanse the banking system. To ensure a competitive environment it is important to avoid unjustified differences in the regulation of private financial intermediaries and organizations with state participation”, — the document says.

The proposal of the Central Bank according to the proportional regulation of credit institutions with the spread of the norms of the Basel standards for large, internationally operating banks and simultaneously to reduce the regulatory pressure on smaller credit institutions, Alfa-Bank called reasonable.

“The practical challenge is to clarify the final legislative language and consider the real commercial interests of all groups of banks. This must be done in a calm and balanced dialogue, without loud slogans, accusations and labels. Thus, the Russian banking system should prove your maturity and willingness to change”, — summarized in the statement of Alfa-Bank.

In the ARB’s claim of Alfa-Bank to the contents of the report were groundless, stressing that the document has been approved by the Association Council almost unanimously (made only against himself Alfa-Bank and one voter abstained).

In presss-service of the ARB assured that prepared by the Association, the report “does not contain and can not contain” any allegations against the Bank of Russia, noting that the production of “sharp headlines” has never been perceived by the regulator as unacceptable behavior.

“In this regard, the Association would like to recall the words of Voltaire “I do not share your beliefs, but willing to die for your right to Express them”, noting that Alfa-Bank may have an opinion and Express it, – reads the statement of the press-service ARB.