Central Bank’s powers may be temporarily limited
The Government is considering a request fr om the bankers, who ask to partially lim it the regulating powers of the Central Bank and to not punish the credit organizations for breaches. These and other measures are proposed to be temporary – until the economy overcomes the crisis. The request (Izvestia has a copy at its disposal) has been sent by Andrey Emelin, the Head of the National Council of the Financial Market (NCFM) to First Deputy Chairman of the Government Igor Shuvalov.
The Head of the NCFM in his letter to the Government describes a truly apocalyptic scenario: due to the rouble depreciation, lower economic growth and higher interest rates, “many banks suspended all current deals of retail and corporate credits in the second half of December of 2014”, “certain banks, including some backbone ones, began reviewing the terms of the existing loans, raising the rates on the loans that have already been issued”, “the profitability of business is going down… [which] causes a general decrease in the companies’ demand for loans” etc. <...>
According to Мaxim Mezentsev, Associate of the Law Firm "YUST", the NCFM’s desire to increase the amount of the operations appears reasonable.
M.Mezentev says: “The law stipulates several types of operations with the threshold amount, including buying and selling foreign currency, after which identification is required. A decision is required here if said threshold should be raised for all operations or not. Still, the main question remains unanswered: how will this proposition help to fight the crisis? In other words, it is not quite clear if this is a specifically anti-crisis measure or just the banks wishing to make life easier for them”.
Rankings and Partners
