PRESS: More banks want to leave Association of Russian Banks

MOSCOW, Aug 4 (PRIME) -- Garegin Tosunyan, president of the Association of Russian Banks (ARB), refused to leave his position voluntarily, prompting more banks planning to withdraw from the association following eight largest institutions, Kommersant business daily reported on Friday with a reference to top managers of larges banks.

In July, Sberbank, VTB Bank, VTB 24, Russian Agricultural Bank, Gazprombank, Alfa-Bank, Otkritie Financial Corporation (FC) Bank, and B&N Bank withdrew 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.

According to Kommersant sources, other banks that plan to leave the ARB include AK BARS Bank, Bank Zenit and its affiliate Lipetskkombank, Sovcombank, Absolut Bank, Sviaz-Bank, and Rosevrobank as they are also discontent with how Tosunyan manages the association. The business daily also reported that Tosunyan still insists that there is no reason for reform in the organization.

The banks that are discontent with Tosunyan’s policy plan to enter the Rossiya association. Current head of Rossiya Anatoly Aksakov plans to share management of the organization with current First Deputy Central Bank Chairman Georgy Luntovsky, who plans to leave his post in September.

On August 18, Rossiya is to hold a meeting to discuss a reform of the association, including appointment of Luntovsky as the president and Aksakov as the chairman of the board of directors, Kommersant reported.

The reform will also set requirements for banks to enter the association so that Rossiya represents interests of stable banks. The requirements will also be applied to the current participants for whom a transition period will be introduced, a source told Kommersant. Another source said that the initiative was coordinated with the central bank and the regulator supports the changes.

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