The state Duma will consider the annual report of Bank for year 2016.

© RIA Novosti / Natalia to Seliverstova in photobacteria the Central Bank of Russia on Neglinnaya street in Moscow. Archival photoThe state Duma will consider the annual report of Bank for year 2016.© RIA Novosti / Natalia to Seliverstova the image Bank

The state Duma on Friday will consider the issue on prolongation of powers of the Chairman of the Bank of Russia Elvira Nabiullina and the annual report of the Central Bank of the Russian Federation for the year 2016.

The MPs will consider the draft resolution on the appointment of the Chairman of Bank of Russia Elvira Nabiullina since June 24, 2017, that is, to extend its mandate for another five years. The financial market Committee on Monday recommended the state Duma to adopt the resolution.

Nabiullina, who previously held the posts of Minister of economic development and assistant to the President, headed the Bank of Russia on 24 June 2013, succeeding Sergei Ignatiev, who led the Central Bank since 2002. During the work of the Central Bank Nabiullina has been criticized by many deputies and businessmen for exchange rate policy in 2014 and a low rate of decline in interest rates.

One of the main opponents of the current head of the Central Bank is of the Stolypin club, offering fast reduction of the key rate and the start-up of the emission mechanism. Began when Nabiullina in 2013, the cleanup of the banking sector led to a reduction in the number of banks in Russia by almost a third.

Russian President Vladimir Putin on March 22 presented the candidacy of Nabiullina in the state Duma to prolong powers of the head of the Central Bank for a new term. Under the current law on the Central Bank, Bank of Russia Chairman shall be appointed by the state Duma for a term of five years by a majority of votes from total number of deputies. But his candidacy represents to the state Duma the President of the Russian Federation not later than three months before the expiry of office of the incumbent head of the Central Bank. Thus one and the same person cannot hold the position of Chairman of the Bank of Russia more than three consecutive terms. Earlier, the head of the Central Bank was appointed for four years.

Before considering the extension of powers Nabiullina, the deputies will discuss the annual report of the Bank of Russia for 2016, which will represent the head of the Central Bank and which the profile Committee recommended the state Duma to take note of. According to the report, revenues of the Central Bank in the past year was 430,19 billion rubles, expenses — 386,45 billion, and profits declined by 61.2 per cent to 43.7 billion rubles, as against in 112.6 billion in 2015.

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