Russian Bank Association proposes to restrict foreign banks’ access to Russian market after Russia joins WTO

Russian bankers are concerned with possible consequences of Russian WTO membership. This was reported, according to PRAVDA.Ru correspondent, by Vyacheslav Zakharov, acting vice president of Russian Bank Association (ARB) July 19, at 7th North-West Bank Conference in St Petersburg.

According to Zakharov, after Russia joints WTO, some transition period is necessary of about 10-15 years, allowing to Russian banks to in full volume keep specific duty of Russian Federation in financial services. For this period, Russian Bank Association proposes to introduce some limits for foreign banks and to work out rules of their access to Russian market. According to Zakharov, this could consolidate financial statement of Russian banks and increase competitiveness of Russian bank system.

Among the proposed measures restricting the foreign banks access to Russian market, there is the ban of transfrontier supply (except but consulting and some other services), permission of commercial presence only as a juridical person (without permission to create branches and missions), 15-percent quotation of the foreign capital participation in bank system of the Russian Federation (as well as for insurers).

Svetlana Barsukova PRAVDA.Ru St Petersburg

Translated by Vera Solovieva

Read the original in Russian: http://www.pravda.ru/main/2002/07/19/44437.html