Central Bank Chairman Sergey Ignatyev must be very pleased with the decision of the Supreme Court which ruled to support banking officials.
Photo: Ilya Pitalev
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Supreme Court Backs Up Central Bank’s Single-Handedness
The Russian Supreme Court has sided with the Central Bank in the country’s first case over a refusal to include a bank onto the list of the national deposit insurance system. The court passed the final verdict to recognize the Central Bank’s right to evaluate a bank’s activities and make its own decisions.
The Supreme Court was considering an appeal by Russky Bank Delovogo Sotrudnichestrva (RBDS) which had not been included into the deposit insurance system. RBDS has so far been the first and only bank to be successful in appealing a refusal from the Central Bank. The Supreme Court on Tuesday ruled in favor of the banking officials, invalidating all previous decisions.
The Central Bank views the verdict as an important precedent which has shown that banking authorities have a right to draft their own criteria for banking supervision.
Pavel Medvedev, deputy chair of the State Duma Banking Committee, says that the court’s decision follows a global trend which makes the regulator responsible for banking oversight.
Meanwhile, a taskforce has been set up to make sure that “the Central Bank interprets the law in the one way”, Vladislav Reznik, chairman of the Duma’s banking committee, said. The Duma deputy added that the court’s verdict has indicated to potential problems with the Central Bank’s single-handedness.
www.kommersant.com
All the Article in Russian as of June 20, 2007
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