The Central Bank has overlooked the complexity of large banks, Fitch considers

© RIA Novosti / Vladimir Astapkovich in photobacteria the Central Bank of the Russian Federation. Archival photoThe Central Bank has overlooked the complexity of large banks, Fitch considers© RIA Novosti / Vladimir Astapkovich the image Bank

The «clearing» of the banking sector by the Bank of Russia, brought both advantages and disadvantages, it eliminated the problem of additional, illegal capital outflows, but held the wrong end, told RIA Novosti senior Director of analytical group on financial organizations and leading analyst for the Russian banking sector to international rating Agency Fitch Alexander Danilov.

«As for the «clearing» of the sector — there are many positive aspects, is something for which Central Bank can criticize. The positive point is that clearing is allowed to remove largely from the sector of the banks that engaged in any illicit activities, in particular money laundering, illegal withdrawal of money abroad. Thus, the Central Bank decided one of the main problems is not that for the banking sector and the country as a whole — the illegal outflow of capital from the country,» he said.

According to Danilova, from 2005 to 2012-2013 of Russia took approximately 25-30 billion dollars annually. «This so-called questionable transactions of the banking sector. Since, as the Central Bank engaged in cleaning, this figure began to decline, and now it’s less than a billion dollars. Thus, these dollars out of the country doesn’t go, remain, and it increase our financial stability as a whole, especially against external shocks. That is, it is a great achievement,» — said the expert.

«As for the criticism — decided the issue was not without cost, as we know, these costs are large. In particular, the problem is that when the Central Bank began «cleansing» they (the representatives of the regulator — ed.) went from the bottom up, that is, with smaller banks began to rise higher. And while they did, they overlooked the problems that have been accumulating big players — «the Opening», the Bank, Promsvyazbank, which was wrecked this year, and the Central Bank was forced to rescue them,» says Danilov.

«If they started from the top down, perhaps, problems could have been avoided. It is possible to criticize. On the other hand, the problem is not a fundamental character, it is manageable, the Central Bank decides it», he added.

The head of the Central Bank Elvira Nabiullina said in may that the Bank of Russia has completed most of the work of cleansing the banking sector of the Russian Federation, it will be fully completed within two to three years. Since the arrival of Nabiullina to head the Central Bank in mid-2013, the regulator began the active «clearing» of the Russian banking sector from unfair and weak players. During this period, the Central Bank has revoked the licenses of nearly 400 banks. The number of withdrawals decreases with the years. So, in 2016, lost the license 93 a Russian Bank, 2017 — 47.