Medvedev meets experts, businessmen to discuss banking sector
MOSCOW. March 13 (Interfax) - Russian President Dmitry Medvedev met cabinet ministers, economists and businessmen on Monday to discuss proposals for the development of Russia's banking sector.
The meeting, the next in a series of consultations on economic issues and development benchmarks within the framework of Strategy 2020, highlighted conclusions presented by a working group headed by Sberbank Chairman German Gref and MDM Bank Chairman Oleg Vyugin.
The participants included Kremlin Chief of Staff Sergei Ivanov, Presidential Aide Arkady Dvorkovich, Finance Minister Anton Siluanov, Economic Development Minister Elvira Nabiullina, Central Bank Chairman Sergei Ignatyev, Rector the Presidential Academy of National Economy and Public Administration Vladimir Mau, Sberbank Chairman German Gref, VTB Chairman Andrei Kostin, Rector of the Higher School of Economics Yaroslav Kuzminov, VTB-24 Chairman Mikhail Zadornov, Alfa Bank Chairman Pyotr Aven, President of the Association of Russian Banks Garegin Tosunian, Vice President of the Russian Academy of Sciences Gennady Mesyats, and Russian Standard Group head Roustam Tariko.
The meeting discussed "proposals prepared by ministries in the past few months," Dvorkovich told reporters after the meeting.
"Meetings have already been held on budget policy, macroeconomics and tax policy. This meeting was on issues concerning the development of the banking sector," he said.
"The meeting participants generally agreed on all the main issues. There were no serious disagreements," Dvorkovich said.
"Among the main issues talked about were reducing the burden on banks and easing their activities in regard to paper reporting, excess paper document flow, particularly on mobile and Internet banking services," Dvorkovich said.
The meeting also discussing "raising the financial literacy of citizens, a special program for school children, work through television, through the Internet," he said.
"The president supported a proposal from experts and banks to stimulate the expansion of non-cash turnover, but not with a ban, but with incentives," Dvorkovich said.
"The privatization of state banks to expand competition was also discussed. Here the president confirmed the government's plans in regard to the stakes it controls in all banks, as well as the need to sell subsidiary banks that belong to Vnesheconombank (VEB)," Dvorkovich said.
"There was a discussion about increasing the minimum capital of banks. Most large banks are proposing a faster increase in minimum capital," he said. The current proposal is to increase minimum capital to 300 million rubles by 2015.
"The president ordered further discussion and the submission of recommendations on the wisdom of moving faster and increasing minimum capital more significantly," Dvorkovich said.
"And there is a general desire among the meeting participations to give the Central Bank broader authority to work with banks' borrowers with the instrument of reasoned judgement - that is not formal quantitative norms, but quality analysis of risks that threat commercial banks," Dvorkovich said.
"The Central Bank proposed to move gradually here, first of all applying reasoned judgement from the beginning of operations with the greatest risks, for example operations with affiliated parties, when loans and financing are extended to dependent companies," Dvorkovich said.
As a result of the meeting, the "president ordered that regulations be drafted on the main issues where there is agreement," he said.
Dvorkovich said Strategy 2020 meetings will be held in the next months "in the format of open government, including on March 14, on the issue of government service."
"Meetings [with the president] on economic issues will be held in a more compact format in April," Dvorkovich said.