The head of the ARB commented on Putin’s words about the improvement in the financial market

© RIA Novosti / Evgeny to Betemporary in Photobacterium of the Russian Federation Vladimir Putin during an annual big press conferenceThe head of the ARB commented on Putin’s words about the improvement in the financial market© RIA Novosti / Evgeny to Betemporary the image Bank

Policy of Bank of Russia on the financial recovery of the market takes into account the interests of Bank customers, said RIA Novosti the head of the Association of Russian banks (ARB) Garegin Tosunyan, commenting on statements of Russian President Vladimir Putin.

The Russian President at his annual press conference on Thursday said that improvement of the Russian financial market, including banks, should be in the best interests of clients. The President also noted that the policy of the Central Bank does not lead to the nationalisation of the banking system of the Russian Federation.

«CB, of course, focuses on the fact that the clients’ interests must be considered, but it is not a priority of the Central Bank. Customer focus of the Central Bank adequately supported and is seen as an important task. For example, the Institute of financial Ombudsman, which ARB established 7 years ago — now Bank with us is lobbying for the adoption of the law on behalf of the President,» said Tosunyan.

Government and banks

The current economic situation forced the government to intrude in many areas of the economy, but if in a few years this trend will not change in the economy can cause serious problems, warns Tosunyan.

«There are too many internal and external factors that affect our economy and banking system, forcing excessive centralization — the state has one, another, a third sphere to be implemented. When will be possible to reverse the trend, it is very difficult to predict — it is not the economy works, there’s more policy work. I very much hope that in the foreseeable future, i.e. in the next 3-5 years, the trend should change. Otherwise we will have serious problems in the credit market and in the economic sphere», — he said.

While Central Bank policy is not intended to increase the government share in the banking market, I’m sure Tosunyan. «The Central Bank has repeatedly said he does not intend to increase the state’s share in the banking system. The reorganization, which took place this year, the Central Bank does not receive any pleasure. When there is a choice meanwhile to bankrupt the largest market participants and thereby create a large complexity in the market, and in order to go the way of readjustment that for some time leads to the nationalization of two evils choose the lesser» — he explained.

Putin at a press conference said in response to accusations the Bank of Russia in the nationalisation of the banking sector that the Central Bank «if something takes «under itself», for the purpose of privatization.» «The process will develop in this direction», — assured the President of the Russian Federation.

Currently, «FC Opening» and a Bank included in the top 12 in Russia by size of assets, undergo a new procedure of financial recovery through controlled Bank Fund consolidation of the banking sector. On reorganization of «Opening» the Central Bank announced on August 29, Joined — September 21. According to the new resolution mechanism of the Central Bank becomes the majority owner of the rehabilitated banks with subsequent sale to a private investor.

The head of the Central Bank Elvira Nabiullina at the end of September said that the state’s share in Russia’s banking sector is large enough, and with the development of the economy should be reduced.

Whether enough banks?

The head of the ARB believes that banks in Russia are not sufficient to meet the demand of the Russians for banking services.

Putin in a course a press-conferences declared that in Russia a fairly large number of banks for the current level of economic development.

According to RIA Rating, on November 1 in Russia, there were 561 Bank.

«I believe that the number of banks determines market demand. If we had today’s fairly low interest rates and an abundance of banking services, and there would be fewer claims to the banking system, then I would consider that they are sufficient. I assume that once we have high prices for banking services, tariffs, interest rates on loans — hence, these services not enough» — said Tosunyan.

«But I find it difficult to say exactly what the banks need,» he added.