Cbank wants appointment of interim administration to fincl holdings

MOSCOW, Sep 27 (PRIME) -- The central bank will study introduction of an interim administration not just to banks, but to financial holdings as well during bailouts, the regulator said Wednesday in a statement quoting Deputy Chairman Vasily Pozdyshev.

“It would be reasonable to study the issue of introduction of similar measures of appointing an interim administration during financial recovery not to just banking holdings, but to financial holdings as well,” Pozdyshev said as cited by the authority in a letter sent to PRIME.

The regulator also wants to amend the law and to introduce a subsidiary liability of financial organizations’ owners during a bailout of the organization, not only during bankruptcy proceedings, he said.

On Tuesday, Deputy Finance Minister Alexei Moiseyev said measures are necessary against banks financing purchases of assets by owners of the banks. The new edition of the bankruptcy law defines subsidiary responsibility of owners of banks only if a said bank is undergoing bankruptcy proceedings.

But Pozdyshev said that the law does not set subsidiary obligations in bankruptcy prevention measures. The regulator is only allowed to file a suit against owners of a bank demanding redemption of losses inflicted on the bank by actions of managers and owners of a bank.

“We have not used the mechanism in practice, and its efficiency in collection property of owners of banks is yet to be tested and assessed. I think that direct regulations of a law, which set subsidiary liability of owners of financial organizations not just during bankruptcy but during financial recovery – a bankruptcy prevention measure – as well, could significantly cut government spending on bailing out troubled financial institutions,” he said.

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