The Central Bank can demand that commercial banks' managers be replaced

The Russian government has endorsed the draft law under which the Central Bank can demand that commercial banks' managers be replaced. Alexei Ulyukayev, Russia's first deputy finance minister, made a statement to this effect after the government met in session to discuss the reform of the banking sector.

In Ulyukayev's words, the government supported a proposal to work out a draft law on qualification requirements to the banks' management personnel.

As Alexei Ulyukayev noted, under the draft law the Central Bank can, in case of incompetent management of a lending organisation, terminate the validity of the qualification certificate granted to its managers and demand that they should be replaced.