Central Bank of Russia sees rise in practice of banks dishonestly informing clients about deposit terms

MOSCOW. Feb 27 (Interfax) - The Central Bank of Russia sees a rise in the practice of banks dishonestly informing clients about the terms and conditions of deposits, and expects the lending institutions to resolve the situation independently within the association, Central Bank Governor Elvira Nabiullina said.

"We have seen a rise recently in the practice of dishonestly informing people about the terms and conditions of deposits. We have increased competition for depositors, and we see how banks focus on maximum rates although the maximum rates could be valid for a short period. We have sent directly targeted recommendations to the banks that have been noticed doing this on how to inform consumers about deposit parameters, etc. We must admit that several participants have adjusted their business processes, we will continue working with the rest," Nabiullina said at the annual meeting of the Association of Russian Banks with Central Bank management.

"We expect a unified position to be formed within the association on how to post information about the terms and conditions of deposits, so that there is equal competition here and so that there is not any dishonest information. We would also like to give the banks the opportunity to resolve the matter themselves within the association, the rules for disclosing information on websites. As you understand, if this is not done, then we always have other levers," she said.