| Other Photos |
 |
|
 |
Central Bank Demands Info on Bank Owners
The Central Bank of Russia plans to require banks with foreign shareholders to provide information about their final beneficiaries of those hare packages. Amendments to that effect, which are still undergoing conciliation within the Central Bank, may be passed by the State Duma at the beginning of next year. There are question, however, about the effectiveness of the move, since it will be impossible to verify the information the Central Bank gathers.
The Duma passed amendments to the law “On Banks and Banking Activities” at the beginning of this year that gave domestic and foreign investors in Russian banks equal rights. Under those amendments, no information is required to obtain shares of less than 1 percent in banks. The new amendments have been prepared in accordance with the recommendations of the Basel Committee on Effective Banking Supervision. “We need information on those beneficiaries that may exert significant influence on the decision being made,” a Central Bank source commented.
Bankers note that it is difficult to obtain the information the Central Bank is seeking. One source said that the common practice is to discover beneficiaries during stock placement on foreign markets. The Bank of New York, the depositary for the Vneshtorgbank IPO, undertook to find out information on investors. That information was provided on a voluntary basis, however. Knowing the owners of 75 percent of shares is considered a high level of disclosure.
Bankers also doubt that foreign shareholders can significantly influence foreign banks. Vneshtorgbank is the only Russian bank that has held an IPO abroad, although Sberbank plans to make its stock available in London. Twenty-two percent of Sberbank stock is already in the hands of foreigners. Several other banks are waiting for market conditions to shift before they also hold IPOs.
www.kommersant.com
All the Article in Russian as of Sep. 10, 2007
|
|
|
