The restructuring of the Central Bank: why Nabiullina replaced the curators of banking supervision

The solution to the problems of banking supervision called for its overhaul, acknowledged for the first time the regulator announced on Monday about the number of personnel changes in the leadership, with effect from October 17. As reported by the Central Bank in its press release, the head of the Bank of Russia Elvira Nabiullina will directly supervise the issues of monetary policy.

Earlier issues of monetary policy, the Central Bank Dmitry Tulin in charge, from January 2015, held the post of first Deputy head of the Bank of Russia. Now, according to the Central Bank in its supervision are issues of banking regulation and supervision. Thulin will also coordinate and monitor the activities of the service of risk analysis, to head the banking supervision Committee and to oversee the activities of the two Deputy Elvira Nabiullina — Vasily Pozdyshev and Vladimir Safronov, who is also the head of the main Inspectorate of the Central Bank.

First Deputy head of the Central Bank Alexei Simanovsky takes up the post of adviser to Nabiullina, said the regulator. Deputy Chairman Mikhail Sukhov leaves the Bank of Russia. “I am very grateful to Alexey Simanovsky and Mikhail Sukhov for the great work done to improve the regulation and improvement of the banking sector, mitigate the impact of external shocks for the Russian banks”, — said the Chairman of the Bank of Russia.

As explained by Elvira herself in the comment, banking supervision in Russia requires a deep restructuring and renewal of the entire system. In this regard, she announced plans to centralize banking supervision, which will be to improve Supervisory vertically, the transfer of more powers from local institutions to the banking supervision Department and a significant strengthening of its responsibility for Supervisory actions.

Simanovsky and Sukhov was in charge of supervision even when the former Chairman of Bank of Russia Sergey Ignatyev. Sukhov works in the Bank in various positions since 1993. Simanovsky works in the Bank since 1986. While all other key areas of the heads are mostly replaced with the departure of Ignatieff.

Dmitry Tulin worked at the Central Bank (the state Bank) in the period from 1978 to 1991. Then after a break returned to the position of Vice-Chairman, having worked in 2004-2006. Then on 16 January 2015 appointed the first Deputy Chairman, Bank of Russia, took office on 21 January 2015. The Bank of Russia began working with issues of monetary policy.

Interviewed market participants recognize that such a serious reshuffle of the Central Bank became for them a surprise. However, they unanimously welcome the new curator of banking supervision.

“Tulin is known in the market as a consummate professional, his arrival can only be welcomed. We expect changes for the better in the area of banking supervision in connection with his arrival”, — said the Chairman of the management Board of UniCredit Bank Mikhail Alekseev.

“Empowerment Tulin does not seem surprising. At the time, he published many articles regarding banking supervision, and he gave the subject of banking supervision much attention. I think this is a very clear purpose. It was not surprising. News about Simanovsky and Sukhov seems strange. I don’t know how to interpret it,” — said the chief economist of Alfa Bank Natalia Orlova.

“Probably Nabiullina had carte Blanche, because even Ignatieff did not have authority to remove the team,” says President of the Moscow international currency Association (mica) Alexey Mamontov. In his opinion, the resignation of the Chairman of the Central Bank could initiate the power structure, who have accumulated a lot of questions to the surveillance unit. “We’ll see it later. If Sukhov will not be appointed to some high post, the market learns a lot,” — said Mamontov.

In his opinion, the appointment of Tulin for the post of head of the Supervisory unit is a positive sign for the market. “Tulin is a very decent and professional banker. He has experience in the oversight Committee of the Central Bank”, — he added.

“Reforms in banking supervision is long overdue. But it is unclear how they will change the policy of the regulator,” — said the President of NAPCA, Alexey Savatyugin. He said the appointment to the post of head of the Supervisory unit of Dmitry Tulin logical solution. “Tulin was always close supervision, so it was strange when they took him to answer for the OST,” says Savatyugin.

President of Association of regional banks Anatoly Aksakov notes that Tulin previously, working in the Supervisory unit, showed a principled position, sometimes disagreeing with the decisions of the leadership take tough decisions for the implementation of monitoring actions. “In relation to monetary policy, Nabiullina all the key decisions are made independently, so this decision just formalizes what it was without it. Perhaps in the future she will find a man for this position. However, while she is given a special period in the economy and the harsh debate around monetary policy, considers what is important is the direction of hold in their hands,” he added. “I have been acquainted with him. Remember that three years ago at one of the meetings with the Central Bank, I opposed the pathoanatomical approach to the banks. I was supported by Elvira and Tulin,” — says the head of the ARB Garegin Tosunyan.

Chief economist at Danske Bank Vladimir miklashevskii called internal reshuffle “cosmetic step”. He believes that they can actually be connected to the acting head of the “T” Guebipk the Ministry of internal Affairs of Dmitry Zakharchenko, who, according to investigators, long time protected a group of entrepreneurs, including the leaders of Nota-Bank “In the background of this case, the market there is a distrust”. Any major signals to the market miklashevskii sees. “Nabiullina has not changed. Tulin remains — his knowledge and experience is simply transferred to another area within the Bank. The trust is maintained. Line of the Central Bank for the market is clear,” he says.

However, experts note that Bank supervision had a lot of complaints. On the General background they highlight the history of Russia, where there were many senior investors. It is no coincidence, in February, Matvienko criticized the activities of the oversight unit, proposing to introduce liability for its leaders,” said a source in one of banks.

Unofficially market participants indicate started in the summer of inspections the Bank of Russia with the Prosecutor General, as well as the September seizure of documents in the office of the Central Bank in Moscow, which was held by the employees of the RCDS. However, the main burden of a previous Supervisory team, all agreed — the amount of funds spent on sanitation. Eight years for this purpose was sent to more than 1.5 trillion rubles. thus, the largest budget expenditures were spent on reorganization of several banks. In particular, the restructuring of the Bank “trust” has been spent 127 billion rubles Mosoblbank — more than 172 billion RUB a Hole in the capital of the Bank “Russian credit”, according to the latest estimates, increased to 111 billion rubles, and in Russia it exceeded 210 billion rubles.