30 Nov 2022 19:56

Ban on information disclosure by banks to be replaced by 'limited disclosure' on Jan 1 - CBR

MOSCOW. Nov 30 (Interfax) - The Central Bank of Russia (CBR) is extending its ban on disclosure of financial statements in a modified form starting from January 1, 2023, envisaging a transition from the ban to a mandatory limited disclosure, according to a statement from the regulator on the partial lifting of concessions, new measures to support banks and changes in banking regulation in 2023.

At the same time, the right of banks not to disclose information sensitive to sanctions risks has been extended by 6 months - through July 1. This applies in particular to reorganization, ownership structure, members of governing bodies and other officials, persons controlling lenders, and material facts affecting the financial and economic activities of the lender being reorganized in the form of merger, takeover and transformation.

Earlier, Central Bank chief Elvira Nabiullina said that the Central Bank considers it necessary to return to the disclosure of information, albeit in a new format, which is now actively discussing.

"Banks do not disclose full statements, but some indicators at the moment, but we are actively discussing the format of information disclosure next year. Our position is that we need to start disclosing this information. Of course, disclosure formats will change somewhat, there will be aggregation of data, information that is quite sensitive may not be shown," she said.

However, the main financial indicators by which customers, investors, stakeholders will be able to make judgments for themselves about the financial situation of certain financial institutions should be disclosed, Nabiullina said. "We believe that it is very important in terms of attracting investment, this is carried out through the financial sector, we need to support investment for the structural transformation of the economy, and an essential part of the investment climate is the availability, transparency of information, including on financial institutions," she said.