Eight of the largest Russian banks announced the release of the ARB

© RIA Novosti / Natalia to Seliverstova in photobacteria Alfa-Bank. Archival photoEight of the largest Russian banks announced the release of the ARB© RIA Novosti / Natalia to Seliverstova the image Bank

The eight largest banks, including Sberbank and VTB, announced the release of the Association of Russian banks (ARB) because of its leadership position on several issues, including the activities of the Central Bank on sanitation sector financial and credit institutions. A joint Declaration was published on Monday.

The document was signed by chairmen of the Board of Sberbank, VTB, VTB 24, Rosselkhozbank, Gazprombank, Alfa-Bank, Bank «FC Opening» and of the Bank. It notes that the effectiveness of the Association’s activities has been steadily declining. Banks indicate unsatisfactory work of the ARB, which, in their opinion, when making decisions, does not take into account the interests of the members of the organization, as well as «replaces constructive dialogue with many hours of speeches.»

«Unjustified criticism by the Association of a number of legislative initiatives (for example, proportional regulation of activities of credit organizations), as well as activities of the Bank of Russia for cleansing the banking sector from unfair participants, hinders the growth of prestige of the banking system and the trust of customers by promoting competition in the financial market and leads to a deterioration of the quality of banking services», — said in a joint statement.

According to the credit institutions, the activities of ARB undermines business partnership between banks, prevents their constructive engagement and cooperation with the Central Bank and government agencies. In addition, it is noted that often credit institutions are not involved in the preparation of the key documents guiding the activities of the Association. «The responsibility for this situation carries the President of the Association, which in its activities was largely motivated by personal interests,» — said in a statement.

«Given the above, we accept the decision to withdraw from the Association and we consider inadmissible all further actions carried out on our behalf», — the document says.

Representatives of ARB have also stated their position. «We regret that some large credit institutions took the decision to withdraw from ARB,» reads the official response from the organization. «Articles of Association means the rule of «one member Association, one vote», and this rule is strictly observed. All major decisions related to the activities of the Association, are made collectively by the Council, ARB, approved at the meeting of the Association — said in a release.

The ARB emphasized that the position of the Association on the development of the banking sector, including those set out in the report to Congress in 2017, was approved on a Council vote in March 2017 44 bedrooms «for» and one «no» vote and one «abstention».

«In this regard, we categorically reject the accusations of some credit institutions that the report’s conclusions do not correspond to the opinion of the members of the Association. The big banks — members of the Association can (and always could) to take an active part in the formation of the ARB’s position on issues of financial market development on different levels — from Board ARB to work in the committees of the Association», — is spoken in the message.

While the Chairman of the Board of alpha Bank Vladimir Senin said that leading players in the financial sector discussing the possibility of creating new enterprises, alternative ARB.

«We believe that the interaction of financial institutions should be based on new principles. Banks do not need bureaucratic, uncontrollable machine. Need an easy Association with a transparent structure, which will really take into account the voice of each of the credit organization», — he told RIA Novosti.

In March, Alfa-Bank announced the suspension of membership in the ARB because they disagree with several points contained in the annual report of the Association. The head of VTB Andrey Kostin also expressed dissatisfaction with the wording of the document, whose authors criticized the activities of the Russian financial regulator.


Be the first to comment on "Eight of the largest Russian banks announced the release of the ARB"

Leave a comment

Your email address will not be published.