Kudrin delays initiative to raise bank capital requirements
WASHINGTON. Oct 11 (Interfax) - An initiative to order Russian banks to bring the minimum size of their capital to one billion rubles should be postponed, Russian Finance Minister Alexei Kudrin said.
"I have always said that it is necessary to raise capital requirements. But I have always said that even if we come up with such an initiative, this increase should take place in five years. The situation in the [financial] sector remains very tense today. I think that it is too early to propose this initiative," Kudrin said.
Kurdin said in November 2009 that in a year he would be ready to submit a bill increasing the minimum size of banks' capital to one billion rubles and ordering them to bring their capital in line with the new requirement within five years.
Such a measure would halve the number of banks to 500, the minister said.
This initiative should be postponed "until we see stability in the global financial sector," Kudrin said.
The minimum size of banks' capital was increased to 90 million rubles on January 1, and it will be raised to 180 million rubles on January 1, 2012.