Banking on Bolder Reforms.

(From The Moscow Times)

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We look forward to hearing from you.Email the Opinion Page EditorRussia's banking sector and its development are frequent topics of vigorous debate, and the range of views and opinions expressed tends to be very broad.

It is safe to say that implementation of the strategy for banking sector development, approved by the government and the Central Bank at the end of 2001, is progressing apace. The main provisions of the strategy -- increasing banks' stability and making them more effective financial intermediaries, preventing banks being used for dubious commercial purposes, and strengthening creditors' and depositors' confidence in the banking system -- were supported both by the business community in Russia and by business circles abroad.

Some of the planned measures have already been implemented, while others are in the process of implementation. Some important legislative initiatives have been passed -- in particular, the new law on the Central Bank that contains a number of innovations as regards improving banking regulation and supervision. Unstable banks and credit organizations are now removed from the market in a much more timely and effective manner. Those banks under the management of the Agency for Restructuring Credit Organizations, or ARCO, have almost completed restructuring. And work is under way on the key issues of improving creditor and investor protection, securitizing assets, creating a system of deposit insurance, setting up a payments system that operates in real time, and going over to international accounting standards.