Russia's Central Bank will add more than 120 managers of Otkritie Bank to its blacklist. According to the source, other employees may be included in the list.
"The decision was made and brought to the attention of many managers," another source said, explaining that most executives are unlikely to leave their jobs until the end of the temporary administration's work, Kommersant daily reports.
According to the law, guilty bankers are blacklisted for five years, during this time whey are not able to assume positions of leadership in banks (which require approval of the Central Bank), own stakes in banks of 10% or more.
On August 29, the Bank of Russia announced the financial recovery procedure for Otkritie Bank (8th biggest bank in terms of assets), which implies that the regulator will become its main shareholder with a stake amounting to at least 75% and will recapitalize it.
B&N Bank (12th-biggest bank in terms of assets) applied with a request to consider the financial recovery procedure through the Fund for the Consolidation of the Banking Sector earlier this month.
On September 21, the Bank of Russia announced financial recovery of B&N banking group. The regulator will become the majority investor in the bank using resources of the Banking Sector Consolidation Fund.
Professor of the RANEPA faculty of Finance, Money Circulation and Credit, Yuri Yudenkov, speaking to Vestnik Kavkaza, noted that the Central Bank's black list is a sure tool for establishing order in the financial sphere. "It allows us to cut off bankers conducting an unethical policy. Those who made erroneous actions are no longer appointed to top positions," he pointed out.
At the same time, the black list could be extended to other categories of financiers. "It is unfortunate that the black list does not concern the auditors who check these banks and give positive conclusions. It is also unclear why the leaders of the Central Bank's working groups and inspections, who checked the sick banks and made a positive conclusion on the comprehensive verification, were not banned," Yury Yudenkov explained.
In this case, according to the economist, they should not ban all top management of collapsed banks, the situation of each banker must be considered individually. "Within the framework of a large bank, it is necessary to separately consider the fate of branches," the professor of the RANEPA faculty of Finance, Money Circulation and Credit urged.
The professor of the Department of legal regulation of economy and finance at the Institute of Public Administration and Management of RANEPA, Anatoly Selyukov, in turn, stressed that a banker's reputation is a key factor in the evaluation of his activities, and therefore tools for regulating the reputation of financiers are necessary. "This tool is even more important than, for example, seizure of property of bankrupt," he said.
The tool is now very much in demand, because there is a re-issue of financiers in Russia. "I think that 200 blacklisted top managers of Otkritie Bank will not affect the banking sector. We now have bankers looking for work, so the competition is higher than anywhere else," Anatoly Selyukov concluded.
