Head of the Kremlin's expert department Arkady Dvorkovich
Photo: Pavel Smertin
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Banks Meet, Authorities Greet
The 18th congress of the Association of Russian Banks took place on Friday in the House of Unions. It was a very successful year for banking last year, with the growth rate of the banking industry considerably higher than the rest of the economy. Total bank assets rose 44 percent and capital rose 36 percent. Nonetheless, bankers found something to complain about. They lack the long-term resources of the stabilization and pension funds.
Chairman of the expert department of the presidential administration Arkady Dvorkovich spoils the mood somewhat by chiding the bankers for their failure to fulfill a presidential order, however. “The instruction to raise the competitiveness of banks has still only been implemented to a small degree,” Dvorkovich grumbled, before rushing off to another engagement. “Obviously not all of you feel the priority yet of the issue of the development of the banking sector in Russia… We want the agencies and associations (including the ARB) to do everything necessary to fulfill this instruction.”
In November 2006, Russian President Vladimir Putin instructed banks to “develop and implement” measures of strengthen the national banking system, including “raising the level of capitalization and competitiveness of the banks.” Prime Minister Mikhail Fradkov and chairman of the Central Bank Sergey Ignatyev were made responsible for the undertaking.
Vneshtorgbank president Andrey Kostin voice dissatisfaction as well. “It is a paradoxical situation when only Western banks have access to the stabilization fund, and Russian banks, including the largest one, are out of the competition. It is obviously discrimination.” Sberbank president Andrey Kazmin and association president Garegin Tosunyan supported Kostin's statements.
The bankers also expressed their desire that the Central Bank retain its supervisory functions.
www.kommersant.com
All the Article in Russian as of Apr. 09, 2007
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