Information on internal management of credit now required by new standards had previously been available only to key members of the bank's management.
Photo: Èâàí Ãðàíêèí
| Other Photos |
 |
|
 |
Central Bank Ups Transparency
Russian banks are about to become more transparent for investors. The Central Bank has issued new recommendations that banks be stricter in information disclosure when doing their 2007 accounts by international standards. That will mean a detailed breakdown of credit portfolios, where only the volume of loans was indicated before, and separate indication of risks and the way they are managed.
The new Central Bank recommendations are in keeping with the new International Financial Reporting Standard 7 (“Financial Instruments: Disclosures”), which replaces the more liberal International Accounting Standard 30 (“Disclosures in Financial Statement of Banks and Similar Financial Institutions”) in 2007 accounting. As is acknowledged in the introduction to the new standard, information on internal management of credit now required had previously been available only to key members of the bank's management.
The new standard also requires disclosure of extended credits and adjusted interest rates. Experts say that this information is especially helpful for assessing a bank's credit portfolio. With liquidity remaining tight, that information may guide investors' decisions, they say. The quality of financial reporting varies greatly among banks.
www.kommersant.com
All the Article in Russian as of Feb. 28, 2008
|
|
|
