CBR, the regulator of the Russian banking market, should not own commercial banks is conflict of interest, the head of the Ministry Maxim Oreshkin.
Central Bank owns a controlling stake in the largest credit institution of the country – the savings Bank. In addition, through the Fund for the consolidation of the banking sector, the Central Bank controls several banks came under reorganization.
“I do believe that the Central Bank should not own commercial banks. Can’t one organization to regulate, to supervise and to own assets – is wrong,” Oreshkin was quoted by “Interfax”.
“We have in recent years large-scale nationalisation is happening in the banking sector. Central Bank, as it turns out, the main are proponent of increasing the share of government in the economy. We believe that banking is an area where there should be more competition and more private capital,” said Oreshkin on the sidelines of the SPIEF.