Boards of Directors of Russian banks will be held responsible for bringing their credit institution to banking license revocation or a rehabilitation.
During the International Banking Forum in Sochi, the Cental Bank of Russia’s Deputy Chairman, Mikhail Sukhov, announced that the relevant law draft should be submitted to the State Duma for consideration this autumn.
Board of Directors members will be included in the CBR ‘black list’ in case of bank bankruptcy or revocation of its license or a bank rehabilitation. As a result, the negative goodwill of blacklisted persons will not allow them to be hired by another bank. Currently, the said restrictions are not applicable to the Board of Directors if the bank is not declared bankrupt.
In addition, the CBR intends to extend the responsibilities of internal control and internal audit heads that are also involved in and liable for bank bankruptcy. The current CBR ‘black list’ consists of more than 4,100 persons.
Contact:
Yuliya Shibukova
Relationship Manager
Global Securities Services Russia
Yuliya.Shibukova@unicredit.ru