Russia seeks to enhance transparency in banking sector
21 Sep, 2006 07:52
The Russian government has suggested changes to the banking system to tighten investment in the sector. The amendments are intended to increase control over the operation of commercial banks and enhance the level of transparency, according to Prime Minist
At a meeting on Thursday, the cabinet proposed measures to control the acquisition of stakes in credit institutions. Under the proposals, investors must notify the Central Bank when buying at least 1 percent of a bank's stock rather than the current 5 percent. And every purchase of more than 10 percent has to be approved by the Central Bank, lowering the threshold from 20 percent.These measures aim to allow banking supervision agencies to block major investments when they fail to meet established criteria. Finance Minister Alexey Kudrin says that if the amendments come to force, they will be in line with international banking standards.