UPDATE: Eight large banks quit Association of Russian Banks

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MOSCOW, Jul 17 (PRIME) -- Eight large banks, including Sberbank and VTB Bank, have withdrawn from the Association of Russian Banks (ARB) due to the association’s position on a number of issues, including the central bank’s activities to clean up the banking sector, the banks said in a joint statement on Monday.

The document was signed by CEOs of Sberbank, VTB Bank, VTB 24, Russian Agricultural Bank, Gazprombank, Alfa-Bank, Otkritie Financial Corporation (FC) Bank, and B&N Bank. The banks said the efficiency of the ARB’s operations has been falling recently and the management of the ARB does not take into account interests of the association’s members while making decisions.

“Unjustified criticism by the association of a number of legislative initiatives (for example, on the proportional regulation of the activities of credit institutions), as well as the central bank’s activities to clean up the banking sector from dishonest participants, hampers the growth of the banking system’s prestige, client confidence, development of competition on the financial market and leads to a deterioration of quality of banking services,” the statement said.

“Taking into account the abovementioned, we make a decision to withdraw from the association and consider all its further actions on our behalf to be unacceptable.”

The ARB said it was sorry that a number of its members have decided to withdraw and claims that all decisions are being made by its board and then approved at the meetings.

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