Enter to open, tab to navigate, enter to select
PLC Global Finance update for December 2010: Russian Federation
Practical Law UK Articles 3-504-2885 (Approx. 3 pages)
PLC Global Finance update for December 2010: Russian Federation
by White & Case LLP
| Published on 22 Dec 2010 • Russian Federation |
The Russian Federation update for December 2010 for the PLC Global Finance multi-jurisdictional monthly e-mail.
Financial markets regulation
The Central Bank approves plans for the banking sector development in the next few years
On 12 November 2010, the Board of Directors of the Central Bank approved "Guidelines for a Unified State Monetary Policy for 2011-2013". The Guidelines were published in the Central Bank Herald on 9 December 2010.
The Guidelines provide an overview of economic development in the Russian Federation in 2010 and plans for economic development in 2011–2013. The principal goals include the reduction of inflation rates to 5-7% and the maintenance of stability of the financial system.
The Central Bank will continue to develop the banking sector and banking supervision. The Central Bank's priority measures include, among others:
- Development of tools for financial rehabilitation of credit organisations with the participation of the Deposit Insurance Agency.
- Improvement of the Central Bank inspection activities to ensure fuller data is received on the risks assumed by credit organisations and the real condition of their assets.
- Legislative developments regarding capital adequacy rules to bring them into line with Basel documents, as well as the appointment of Central Bank representatives to key banks.
In addition, the Central Bank will take measures aimed at the improving the financial markets and payment system. In particular, it will participate in elaborating legislation on liquidation netting and the national payment system, and work on the development of a national standard of financial messages.
The law on the national payment system in Russia is under way
On 10 December 2010, the State Duma adopted in the first reading Draft Law No. 455931-5 "On the National Payment System". The Draft Law seeks to establish a comprehensive legal framework for the creation of a national payment system in Russia.
According to the Draft Law, the national payment system is to include:
- Operators for the transfer of funds, including electronic money operators.
- Operators of payment systems.
- Operators of services for the payment infrastructure (operational, clearing and settlement centres).
The Draft Law sets out:
- The requirements to be met by those entities (for example; the operators for the transfer of electronic money should be credit organisations).
- The procedure for electronic money transfers.
- The restrictions on transfers abroad of the data on money transfers within Russia.
- The requirements to be met so that the operators for the transfer of funds could participate in cross-border payment systems. The supervision function within the national payment system will be vested in the Central Bank.
The provisions of the Draft Law will apply if adopted by the State Duma in three readings, approved by the Federation Council, signed by the President, and officially published.