Rules concerning rehabilitation of banks, which began before the end of October 2008, were introduced | Practical Law

Rules concerning rehabilitation of banks, which began before the end of October 2008, were introduced | Practical Law

Rules concerning rehabilitation of banks, which began before the end of October 2008, were introduced

Rules concerning rehabilitation of banks, which began before the end of October 2008, were introduced

by White & Case LLP
Published on 11 Aug 2009 • Russian Federation
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Measures introduced in October 2008 to prevent the bankruptcy of Russian banks have been amended to extend the Central Bank's powers to help banks that were in difficulty before the October 2008 law came into force.
On 19 July 2009, the Russian President signed Federal Law No. 193-FZ amending Federal Law No. 175-FZ "On Additional Measures for Strengthening the Stability of the Banking System during the Period until 31 December 2011," dated 27 October 2008. The Law entered into force on 22 July 2009.
Federal Law No. 175-FZ specifies preventive measures that may be applied by the Deposit Insurance Agency to prevent the bankruptcy of Russian banks. The Central Bank is entitled to refrain from revoking a banking licence or imposing sanctions on the bank while the preventive measures are applied.
The amendments extend the operation of the above Central Bank powers to banks to which similar preventive measures were applied without the participation of the Agency before Federal Law No. 175-FZ entered into force.