Any Russian bank that has proved compliance with deposit insurance system member requirements in court must automatically join the system, United Russia faction deputy Anatoly Aksakov believes. Last September, the Central Bank of Russia (CBR) stopped selecting banks for the Russian deposit insurance system. As a result, 20% of the 1,150 Russian credit institutions that filed bids for system membership found themselves thrown overboard. However, some of them could not reconcile themselves to their lot. Presently, 25 banks are involved in litigation disputing the CBR decision. Anatoly Aksakov, who is also deputy head of the State Duma’s banking committee, has decided to strengthen the banks’ positions. He looks to make the Deposit Insurance Agency (Russian acronym ASV)) give access to banks that have proved their compliance with the system’s requirements in court. Now, the agency can include banks into the system only by a prior CBR permit. The deputy has already submitted amendments to the deposit insurance law to the government, the CBR and ASV for consideration.
Source: VEDOMOSTI, May 30, 2006
