Kudrin says change of Association of Russian Bank’s head reasonable

DVORIKI VILLAGE, Vladimir Region, Jul 18 (PRIME) – A democratic replacement of the head of the Association of Russian Banks would be reasonable, Alexei Kudrin, chairman of the Center for Strategic Research board, told reporters on Tuesday.

“I think that changing the head as a result of a democratic reelection within the association would be the best. I think that they should have done it some time ago, as I understand the conflict there. It is a pity that it forced the banks to withdraw from the association and to the loss of such a chance for this old and respectable association,” he said.

Possible creation of a new association is a good step, but it will initially represent only large state banks or banks “close to the state…But I hope that this disadvantage will disappear with time and other banks will enter it,” he said.

“I see a conflict of interests between large and medium-sized banks. They have different interests and different relations with the central bank. But it is OK for different groups of banks to find their own niches and their own form of protection of interests. I have nothing against the process, as an association is a voluntary union,” he said.

Top eight Russian banks – Sberbank, VTB Bank, VTB 24, Russian Agricultural Bank, Gazprombank, Alfa-Bank, Otkritie Financial Corporation (FC) Bank, and B&N Bank – withdrew on Monday from the ARB because of disagreement with the association’s position on a number of issues, including the central bank’s activities to purge the banking sector.

Alfa-Bank Deputy CEO Vladimir Senin told PRIME then that some banks are discussing creation of a new association similar to the ARB.

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