Event of the month:
The State Duma is to review on February 22 in the third reading a draft law seeking to prohibit foreign banks to open branches in Russia.
The draft law aims to exclude the notion of a “branch of a foreign bank” from the laws “On Banks and Banking Activity”, “On the Central Bank of the Russian Federation (Bank of Russia)” and “On Currency Regulation and Currency Control”.
The draft law was compiled as part of a development strategy for the Russian banking sector until 2015 and is to legitimize arrangements made during the consultations over Russia’s admission to the WTO. The idea to impose a ban of this kind was spearheaded by the government. The government thinks that Russian regulatory authorities cannot fully perform supervision over branches of foreign banks as the latter’s activities fall beyond Russian jurisdiction.
Full report is available in pdf. February 2013 Russian banking news.